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CITIES: Economies of Calgary, Edmonton to grow by more than 3% this year
        (AlbertaIndex, September 18, Thursday) --- The economies of Calgary and Edmonton are expected to grow at a slower rate of 3.2 percent and 3.1 percent respectively this year, said the Conference Board.
        In its Metropolitan Outlook Autumn 2008, the Conference Board noted that domestic demand remains strong in both cities. It expects high oil and gas prices to continue to encourage energy-related investments.

((Adsense)) Between 2009 and 2012, Calgary and Edmonton are expected to reclaim their top spots among Canadian cities in average annual real GDP growth.

For 2008, the titles of growth leaders go to Saskatchewan’s Saskatoon and Regina, said the Conference Board.

“Both Saskatoon and Regina are on track to post their strongest rates of economic growth since 1997, and Saskatoon will lead Canadian CMAs in economic growth for the second consecutive year,” said Mario Lefebvre, director for the Centre for Municipal Studies.

“Western Canadian CMAs occupy the top seven rankings in this edition of the Metropolitan Outlook. In contrast, Ontario CMAs are experiencing their weakest growth in more than a decade.”

After growing by 4.1 per cent in 2007, Saskatoon’s real gross domestic product (GDP) is projected to expand by an even faster rate of 5.2 per cent in 2008. Saskatoon’s flourishing economy can be attributed to its position as a key regional centre for the province’s booming resource sector.

The resource sector boom is also lifting economic growth in Regina, which is expected to reach 4.1 per cent this year, the most since 1997. Almost 3,000 people moved to the provincial capital in 2007, and net migration is expected to remain positive over the next few years, helping to fuel robust domestic demand.

Winnipeg’s economy is expected to expand by 3.3 per cent in 2008, on the heels of a 3.7 per cent expansion in 2007. Burgeoning construction activity and vigorous wholesale and retail trade growth are driving the CMA’s outlook.

Victoria’s economy is also on pace to grow by 3.3 per cent in 2008, thanks to robust non-residential construction activity and healthy levels of consumer spending.

Vancouver’s economy is forecast to grow by 2.7 per cent this year. Although the primary and manufacturing sectors are struggling, Olympic and non-Olympic construction activity remains robust. Domestic demand is also an area of strength, as retail sales are experiencing their third straight year of solid growth.

At 2.4 per cent, Halifax is forecast to post the strongest economic growth east of Manitoba. The manufacturing sector is expanding in spite of the high dollar, while non-residential construction activity is strong and the services sector is also posting solid gains.

Quebec City’s economy, which expanded by 3.1 per cent in 2007, is forecast to grow by a more moderate 2.3 per cent in 2008. The 400th anniversary celebrations have bolstered tourism activity, but this is being offset by weakness in the goods-producing industries, in particular manufacturing and construction.

Ottawa-Gatineau, Montreal, Toronto and Hamilton are all expected to grow by less than two percent.

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