CANADA – British Columbia and Alberta will still be performing well this year and will be joined by Prince Edward Island, and Newfoundland and Labrador for the strongest economic growth this year, according to The Conference Board of Canada’s Provincial Outlook: Winter 2018.
“British Columbia’s economy still has a lot of momentum and will be the only province to see economic growth above 3 per cent this year,” said Marie-Christine Bernard, Director, Provincial Forecasting, The Conference Board of Canada. “Most provinces will perform well, though some will see their economic growth moderate this year.”
BC’s economy is forecast to grow by 3.1 per cent this year, making it the provincial economic growth leader.
Alberta, Prince Edward Island, and Newfoundland and Labrador will rank among the fastest growing provincial economies in 2018, with growth of 2.8 per cent forecast for Alberta and P.E.I., and 2.6 per cent for Newfoundland and Labrador.
Ontario and Quebec will see their economic performance moderate from close to or above 3 per cent growth last year to around 2 per cent in 2018.
Fuelled by a number of large energy initiatives that are under development or will start construction this year, British Columbia’s economy is forecast to grow by 3.1 per cent in 2018.
Beyond this year, however, the province is not expected to continue its streak of above 3 per cent growth. The erosion of affordable housing, coupled with tighter mortgage regulations will ease housing demand and contribute to a decline in housing starts in 2019.
Meanwhile, the province’s labour market conditions are expected to parallel the slowdown in the housing sector.
Alberta’s recovery will continue to firm up, with growth of 2.8 per cent forecast for 2018. Drilling is expected to improve or maintain last year’s level of activity, while growth in investment will be modest as major oil sands projects currently under construction are completed.
With employment growing by 1.7 per cent this year, the province’s unemployment rate will drop to close to 6 per cent by the end of this year.
Click here for the conference board’s detailed projections for the remaining provinces.
