Ontario cities will post their second consecutive year of modest growth in 2006, according to the Conference Board's Metropolitan Outlook - Winter 2006.
"The manufacturing sectors in most of Ontario's cities faced a difficult year in 2005. Fortunately, the outlook for this key sector is brighter in 2006, meaning that job creation should rebound," said Mario Lefebvre, director, Metropolitan Outlook Service.
Real GDP growth in Sudbury will increase by 1.9 percent in 2006, thanks to a rebound in the services sector and continued robust demand for nickel. While the CMA's projected rate of increase for 2006 may seem modest, it will be the fastest pace of economic expansion in six years.
Thunder Bay's economic growth will improve to 1.8 percent next year. Nonetheless, the performance will again be the weakest among all 20 cities covered in this edition of the Metropolitan Outlook.
After struggling in 2005, Toronto and Ottawa-Gatineau will be among the fastest-growing Census Metropolitan Areas in Canada in 2006, posting real gross domestic product (GDP) growth of 3.7 and 2.9 percent respectively.
Stronger demand for steel is expected to support Hamilton's key manufacturing sector in 2006. The construction and services sector will also contribute to real GDP growth of 2.8 per cent next year, allowing employment to bounce back.
London's well-diversified economy is expected to post real GDP growth of 2.7 percent next year. Improved manufacturing and construction activity will contribute to stronger job creation.
The manufacturing and construction sectors in St. Catharines-Niagara will rebound in 2006. The CMA can expect growth of 2.6 percent next year.
Vancouver will lead all Canadian CMAs in real GDP growth in 2006, posting an expected gain of four percent.
The Metropolitan Outlook, published quarterly, provides economic insights into 27 CMAs, the provinces, and Canada. (CNW)
