Report forecasts sharp drop in growth for Vancouver, Calgary
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Canada’s western cities are showing slower economic growth while Montreal and Winnipeg are leading the nation.
For the west, growth will ease from 3% in 2017 to 2.6% in 2018 with Vancouver and Calgary showing sharp decreases.
Last year, Vancouver posted a gain of 4.5% in 2017 but is expected to slow to 2.6% in 2018 and 2.4% in 2019. Calgary follows last year’s 4.9% gain with 2.5% in 2018 and 2.3% in 2019.
The Conference Board of Canada’s Metropolitan Outlook Autumn 2018 also highlights Regina for the slowest rate of growth in GDP (1.5%) this year of the 13 metros surveyed.
"While the economies of Canada's western cities will remain healthy, a repeat of last year's strong performances is not in the cards, as rising interest rates and high household debt have taken a bite out of both consumer spending and housing market activity," said Alan Arcand, Associate Director, Centre for Municipal Studies, The Conference Board of Canada. "Next year, western cities will once again be among the top economic performers, but the pace of economic expansion will remain moderate."
Montreal leads growth
For the first time since 1987, Montreal will lead Canada’s metros in GDP growth with 2.9% for 2018.
Although easing from 2017’s 3.7% gain in GDP, Winnipeg will see economic growth of 2.7% gain in 2018. It is however expected to slow to 2% in 2019.
Toronto is expected to see a 2.3% gain in 2018.
Economic slowdown is on the horizon for Canada’s Western cities this year and next. #Winnipeg will have the fastest growing metropolitan economy among western cities this year, behind only #Montreal nationwide. https://t.co/yH439icToZ pic.twitter.com/ZxVi35jlni
— The Conference Board of Canada (@ConfBoardofCda) November 20, 2018
