OTTAWA—A new report on the economy predicts Canada is about to start reaping the benefits of a strong U.S. revival.
The report from the international economic forecasting firm, IHS Global Insight, says Canada’s economy—after suffering a mild setback due to severe winter weather conditions—is in position to start rebounding and will continue to pick up speed over the next three years.
The forecasting firm says growth will average 2.3 per cent this year, 2.5 per cent next year and 2.7 per cent in 2016.
The 2016 projection is half-a-point stronger than the Bank of Canada’s more modest call, but Global Insight’s chief economist Arlene Kish says she is more bullish on the U.S. recovery going forward.
Kish says while Alberta will continue to be the major driver of Canadian growth, she also has Ontario—the country’s manufacturing heartland—staging a comeback from two sub-par years.
Canada’s most populous province is projected to grow by 2.4 per cent this year rising to 2.7 per cent in 2016, essentially matching the national average.
She says Ontario’s goods-production sector, including manufacturing, should benefit from the increased U.S. demand, adding that the province’s underperforming jobs market will likely catch up to the national average of one per cent growth in 2014.