Provincial Outlook Economic Forecast: Spring 2005

This quarterly executive summary provides highlights of the Provincial Outlook report which presents the short-term outlook for Canada’s provinces.

Document Highlights

• Weak exports and a drawdown on inventories will limit Canadian economic growth to 2.3 per cent in 2005.
• An enviable fiscal situation in Alberta and British Columbia will stimulate near-term growth.
• Western Canada is booming as global demand sizzles for mining products.
• Alberta will again lead the provinces in GDP growth in 2005 and will rank second in 2006.
• Before the Ontario economy rebounds next year, weak foreign trade and a reduction in swollen business inventories will keep overall economic growth in check.
• Softness in the domestic economy and in exports will limit real GDP gains to just 2.0 per cent this year in Quebec.
• Newfoundland and Labrador will stand out in 2006 as mining production takes off at the Voisey’s Bay nickel mine and the White Rose oil project.
• New housing construction will cool off in all provinces.