News Releases
Strength in residential and non-residential construction, a sturdy manufacturing sector, combined with solid mining activity will lead to growth of 2.7 per cent this year, according to a provincial economics report released today by BMO Financial Group.
“While the Canadian manufacturing sector continues to sour amid a strong dollar, high energy prices and sputtering U.S. growth, Manitoba's slice of the pie is surprisingly sweet,” according to Douglas Porter, Deputy Chief Economist, BMO Capital Markets. “Also, with commodity exploration also strong, the demand for labour in the province continues to outstrip supply, and some surveys suggest that 80 per cent of businesses expect difficulty finding workers in the coming year.”
Manitoba posted another year of solid 3.3 per cent growth in 2007, buoyed by strength in both residential and non-residential construction, along with a sturdy manufacturing sector. BMO's economics report projects that the strength in those sectors, combined with solid mining activity, will ensure only a modest slowdown to 2.7 per cent in 2008.
Other highlights of the report include:
- Construction activity was the main pillar of strength in 2007 and, on both the residential and non-residential sides, looks to continue this year. With Alberta now cooling and Saskatchewan grabbing all the attention, Manitoba's housing market has quietly climbed up the leaderboard to become one of the strongest in the country.
- Led by components related to the new Boeing 787, and a global upgrade cycle, aerospace and transportation manufacturing have shipments up nearly 9 per cent year-over-year through November—trailing only Newfoundland & Labrador—momentum that should carry over through most of this year.
- The Manitoba government is projecting a $298 million summary budget surplus for fiscal 2007/2008, up from an estimated $166 million in the previous year. S&P upgraded the province to AA from AA- (positive) on December 5th.
The complete report can be found at www.bmocm.com/economics.
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