Le Lézard
Classified in: Champlain Bridge, Business
Subjects: SVY, ECO

Modest Improvements in Store for Economies of Montreal and Quebec City

OTTAWA, Nov. 14, 2016 /CNW/ - The Montreal and Quebec City economies have both seen modest improvement this year, and the gradual upward trend is forecast to continue in 2017, according to The Conference Board of Canada's Metropolitan Outlook: Autumn 2016.

"Quebec's two largest metro economies are on track to expand at a faster rate than Canada as whole this year, the first time this has happened since 2009," said Alan Arcand, Associate Director, Centre for Municipal Studies, The Conference Board of Canada. "Montreal's economic improvement is being driven by massive infrastructure investments and widespread gains across the services sector. While an uptick in public sector activity, along with solid gains in manufacturing and tourism, are supporting stronger growth in Quebec City."


Montreal's economy is forecast to advance by 1.6 per cent this year and by 2 per cent next year, following a 1.1 per cent gain in 2015. Transportation and warehousing is expected to be this year's growth leader, the second consecutive year it can make this claim, as the lower Canadian dollar boosts export activity and thus transportation services. Tourism, a key export sector, is also providing a lift to personal services, which includes accommodation and food, arts and entertainment, and recreation. The personal services sector is set to have another solid year in 2017, as tourists come to the city to take part in 375th anniversary celebrations. Relatively stable employment growth averaging 1.1 per cent both this year and next and a falling unemployment rate will also help encourage consumers to spend, thereby boosting wholesale and retail trade.

The news is more mixed in the goods sector. The construction sector is receiving a big lift from a number of big public infrastructure projects, particularly the Turcot Interchange and Champlain Bridge, but this is being offset by falling housing starts. Following three years of declines, Montreal's construction industry is expected to post flat growth this year, before expanding by a modest 0.9 per cent next year. At the same time, manufacturing output growth is projected to reach just 0.3 per cent this year, before improving to 1.8 per cent in 2017. Part of this year's weakness stems from lower than expected production of Bombardier's CSeries jet.  

Quebec City
Québec City's real GDP growth is forecast to accelerate from 0.9 per cent in 2015 to 1.7 per cent in each of the next two years. Quebec City's manufacturing industry is on track to expand for the fourth consecutive year, thanks in part to the lower Canadian dollar. Like Montreal, the lower dollar is also boosting tourism, and personal services. Quebec City's status as provincial capital means the public sector plays an important role in the metro area's economy. Thus, our forecast of gradual strengthening in both public administration and non-commercial services output is another positive development. On a somewhat negative note, construction output growth will be limited by falling housing starts in both 2016 and 2017. Despite the healthy economic outlook, employment is expected to see its steepest decline since 1997 this year, though this follows strong growth in 2015. Fortunately, things are expected to turn around quickly, with job growth forecast to hit 2.6 per cent in 2017.

Vancouver is expected to boast the fastest-growing metropolitan economy this year and next, among the 13 metro areas covered in this edition of the Metropolitan Outlook. At the other end of the spectrum, the economies of Calgary and Edmonton are expected to contract for a second year in a row in 2016, before rebounding modestly next year.

Join Alan Arcand on November 22, 2016 for a webinar, Beyond Slogans: Comparing Canadian Cities to the World's Best, which describes how five Canadian cities?Toronto, Montréal, Vancouver, Calgary, Halifax?compare economically and socially against some of the leading metropolitan areas in the world.

Follow The Conference Board of Canada on Twitter.

A copy of the report is provided for reporting purposes only. Please do not redistribute it or post it online in any form.

For those interested in broadcast-quality interviews for your station, network, or online site, The Conference Board of Canada has a studio capable of double-ender interviews (line fees apply), or we can send you pre-taped clips upon request.

If you would like to be removed from our distribution list, please e-mail corpcomm@conferenceboard.ca.


SOURCE Conference Board of Canada

These press releases may also interest you

14 mar 2018
The South by Southwest® (SXSW®) Conference and Festivals (March 9-18, 2018) recognized the most exciting tech developments in the world with its 21st annual SXSW Interactive Innovation Awards ceremony Tuesday evening. Two-time SXSW Innovation Award...

13 mar 2018
Many Quebec cities will see their economic growth slow to around 2 per cent, or below in 2018, according to The Conference Board of Canada's Metropolitan Outlook: Winter 2018. "Economic conditions were strong in most Quebec cities last year, with...

23 fév 2018
Safe and secure transportation corridors such as the new Champlain Bridge facilitate trade and create well-paying jobs for the middle class while improving connections across road networks and the continuous and safe flow of people and goods. This...

20 déc 2017
Arup, an independent firm of designers, planners, engineers, consultants and technical specialists, celebrates the opening of the Vaughan Metropolitan Centre (VMC) and York University (YU) stations on Toronto's Line 1 subway extension. Arup served as...

1 nov 2017
Strongco Corporation today reported financial results for the third quarter ended September 30, 2017. Financial and Operating Highlights ? Continuing Operations($ millions except percentages and per share amounts) Period Ended September 30...

24 oct 2017
Développements Symphonia today launched a new, high-end real-estate project on Nuns' Island valued at more than $100 million. Symphonia POP is a condominium building featuring stunning modular architecture, an inspired design, and spectacular...

News published on 14 november 2016 at 09:00 and distributed by: