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CHICAGO, ILLINOIS--(Marketwired - April 27, 2015) -

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There is little question of the importance of the Great Lakes-St. Lawrence Region to North America's economic output, employment and trade, according to a new report from BMO Economics.

The report, North America's Economic Engine, was released today during a keynote address by BMO Chief Economist Doug Porter at the Council of the Great Lakes Region's Great Lakes Economic Forum in Chicago, and projects a positive economic outlook for the region.

"The Great Lakes-St. Lawrence region - which would rank as the third largest economy in the world if it were a country - is a vital driver of North American economic output, employment and trade, accounting for nearly a third of combined Canadian and U.S. output, jobs and exports," said Mr. Porter. "The region's expansion is expected to accelerate in 2015 as manufacturing and exports in Ontario and Quebec get a boost from a weaker currency and firm U.S. demand, while U.S. states in the region see an ongoing housing recovery offset somewhat by the strong U.S. dollar."

Mr. Porter also noted that the region will benefit from the steep slide in oil prices. "Consumers are receiving an effective tax cut at the pump, and costs are reduced through the manufacturing supply chain," he said.

Mr. Porter remarked that sturdy growth is expected for the region in 2015. "The U.S. economy is expected to lead the global expansion in the year ahead, growing at a 2.9 percent clip in 2015, up from a moderate 2.4 percent pace last year," he said. "While Canada is expected to lag with 1.8 percent growth, that largely reflects the impact of lower oil prices in oil-producing provinces. In fact, Canada's regional growth landscape looks to see a dramatic shake-up, with Ontario and Quebec poised to benefit from the combination of a weaker Canadian dollar and firm U.S. demand. Against that backdrop, the outlook for the Great Lakes-St. Lawrence region remains positive."

Mr. Porter stated that some longer-term issues remain for the region's economy. "Labour costs are in focus as the factory sector seeks to remain competitive on the global stage, while policymakers are encouragingly working to keep finances in order, as well as facilitating cross-border trade flows," he noted. "Measures by policymakers to improve trade flows and foster overall growth, plus contributions from the private sector, are key for the long-term health of the broader North American economy."

The full report can be downloaded at bmocm.com/economics.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified financial services organization based in North America. The bank offers a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers. BMO Financial Group had total assets of approximately $672 billion as of January 31, 2015, and more than 46,000 employees.

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