Canadian cities to see slow growth
By Adam FreillConstruction
The impacts of inflation and interest rates expected to persist into 2024; boosts expected from construction and travel.
Canadian cities will see muted growth throughout the remainder of 2023 and into 2024 as inflation and higher interest rates persist, weighing down consumer activity says a recent research report from The Conference Board of Canada. The construction industry will provide a lift, however.
“Coast to coast, Canadian cities will largely be impacted by similar factors in the near future,” said Jane McIntyre, the organization’s principal economist. “Across many cities, local construction projects as well as international and domestic travel will generate a boost for the economies while households and businesses will continue to face headwinds.”
According to the report, various construction and manufacturing investments in Windsor, Ont., are expected to benefit that region for many years, including a new battery plant, updates to Magna’s existing facility and the Gordie Howe International Bridge. These projects, says the conference board, will play a key role in growing the region’s GDP by an anticipated 2.2 per cent in 2023 and a further 1.8 per cent in 2024.
Likewise, Volkswagen’s massive electric vehicle battery plant in St. Thomas, Ont., will greatly benefit London, Ont., while excess savings over the past few years, combined with a tight labour market, have given households the confidence to continue spending on services in the region. GDP in London is forecast to grow 2.0 per cent in 2023 and 1.2 per cent in 2024.
Moncton is seeing strong population growth, in part due to international migration. Economic activity this year will be driven by growth in construction, manufacturing, public administration and healthcare. Combined, the conference board is anticipating a 1.7 per cent increase to the city’s GDP by in 2023 and a further 0.7 per cent in 2024.
Details about other cities, and the full report, can be accessed on the The Conference Board of Canada’s website.