The autumn outlook from the Conference Board of Canada shows that GDP is expected to grow by 4 per cent this year and 2.8 per cent in 2017 with the construction driving that growth with record-level housing starts and strong non-residential projects.
"While Vancouver's economy is forecast to slow next year, partly due to federal and provincial government measures directed at cooling the over-heated housing market, the pace of growth still will be strong enough to maintain the metro area's first place ranking," said Alan Arcand, Associate Director, Centre for Municipal Studies, The Conference Board of Canada.
For Toronto, the growth is forecast to be 3.4 per cent for 2016 and 2.6 per cent in 2017 and although real estate is not the primary driver, it remains one of the key elements of growth with strong housing resales.
Halifax’s economy is driven by manufacturing and is expected to grow 2.6 per cent this year and 2.5 per cent in 2017.
For Calgary and Edmonton recovery is ahead but for 2016 there will be a contraction of 2.1 per cent for Calgary and 1.4 per cent for Edmonton. For 2017, the report forecasts a return to growth of 2.0 per cent for both cities.
Growth for the rest of Canada is expected to be in the range of 1.3 per cent to 2.5 per cent for 2016.
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The economy in Vancouver will be the fastest-growing metropolitan region for 2016 and 2017; Halifax and Toronto are also set to see healthy growth while Calgary and Edmonton will be lower for 2016 but will rebound in 2017.