Western Canada will see some of the highest growth rates in Canada this year, according to new research from the Conference Board of Canada.
Alberta and Saskatchewan are set to lead the country with GDP on track to grow 1.4 per cent this year, ahead of Newfoundland and Labrador’s projected growth rate of 1.2 per cent.
British Columbia and Manitoba are on track for growth of 1.1 per cent, the Conference Board reported.
The data, published June 4, says lower interest rates have encouraged business investment, but threats to international trade have put a damper on the confidence needed to proceed.
“Despite tariffs being paused or scaled back by the U.S. administration, business confidence has decreased and will take time to recover,” said Richard Forbes, the board’s principal economist.
Alberta's economy remains vulnerable to resource-driven uncertainty but will see strong gains in employment this year, nevertheless.
Similarly, Saskatchewan is highly exposed to Chinese tariffs hitting the agricultural sector, though the medium-term outlook for the province is supported by potash and uranium mining.
British Columbia is expected to see strong gains in consumer spending supported by stronger interprovincial migration, which will provide a partial counterbalance to weaker immigration from abroad.
Similarly, Manitoba will also benefit from continued population growth as well as a strong jobs picture. While many sectors face weakness, the construction sector remains strong and the agricultural outlook is also positive.
