Manitoba's economy to thrive in 2016: Conference Board of Canada

Manitoba is poised to be among Canada's leaders in economic growth in the next two years.

The province isexpectedto have the second-fastest growing economy in the country in 2016, just behind British Columbia, then follow that up with an even stronger 2017, according to theConference Board of Canada.

The CBOC, whichreleased its provincial outlook report on Monday, saidManitoba's economy should seereal GDP growth of 2.5 per cent in 2016 and 3.0 per cent in 2017.

"Manitoba will be one of the country's strongest economic performers in 2016, thanks to healthy growth across key sectors, such as construction, manufacturing and service industries," said Marie-Christine Bernard, associate director with the board.

Production at two new mines is ramping up, boosting output in metal mining, while "all the key segments of the province's manufacturing sector are expected to benefit from the lower Canadian dollar and a stronger U.S. economy," the report states.

The manufacturing sector is expected to grow by 1.9 per cent in 2015 and 3.4 per cent in 2016.

As well, construction is booming in the province and will continue to do so as work ramps up on Manitoba Hydro projects and the rolling out of the provincial government's infrastructure plan, according to theCBOC.

• Manitoba Hydro signs 20-year deal with SaskPower
• Keeyask hydro project gets OK from environment commission

Growth in thatsector is expected to reach 1.4 per cent in 2016 and steadily increase over the next two years.

Other highlights include:

• Bright spots in the services sector include transportation and warehousing, which is expected to post gains of 2.5 per cent for 2015 and 2016, and 4.1 per cent in 2017.
• The finance, insurance and real estate sector is also performing well with gains forecast to average 3.4 per cent in 2016 and 2017.
• Employment is expected to rise by 1.3 per cent in 2016 and 1.8 per cent in 2017.

British Columbia is anticipated to lead the country with 3.6 percent growth in 2016, thanks to strong construction andhousing sectors.

Alberta and Saskatchewan will continue to feel the pain from the difficulties in the energy sector, but neither will be in recession in 2016, the CBOC said.

Saskatchewan should bounce out of its recession withtwo per cent GDP growth in 2016, while Alberta is forecasted tosee real GDP growth of 1.2 per centin 2016 after the economy shrank by 1.2 per cent this year.

The Conference Board said low oil prices led to a 15.2 per centdrop in energy investments this year in Alberta and will mean $11 billion lessin the province's economy by the end of 2016.