BMO Economics: Steady Growth for Diverse Economy in Manitoba

BMO Economics: Steady Growth for Diverse Economy in Manitoba 
- Above-average growth  
- Continued momentum in energy and mining  
- Third-lowest jobless rate in Canada  
- Real GDP growth of 2.2 per cent expected in 2013 (Canada's expected
to be 1.7 per cent) 
WINNIPEG, MANITOBA -- (Marketwire) -- 01/17/13 -- Manitoba's diverse
economy should see growth above the national average in 2013,
according to the Provincial Monitor report released today by BMO
Economics. Growth in the province's economy is expected to reach 2.2
per cent this year.  
"Energy and mining activity should maintain their momentum given
still-high commodity prices," said Robert Kavcic, Senior Economist,
BMO Capital Markets. "Real oil & gas output rose at a near-18 per
cent annualized rate over the past 7 years, the fastest pace of any
province." 
Manufacturing is steady thanks to a diverse industrial base, with
shipments of machinery and transportation equipment posting solid
growth in 2012. "Shipments of transportation equipment hit a record
high in July, helped by strong global demand for passenger jets and
public transit vehicles," stated Mr. Kavcic. "In the farm sector, the
extreme drought across much of the U.S. Midwest this past summer has
lifted many grain prices, allowing Manitoba farmers to reap
significant income gains." 
"Businesses are optimistic as evidenced by the investments that are
being made across various industries in Manitoba," said John
MacAulay, Senior Vice President, Prairies and Central Canada, BMO
Bank of Montreal. "The manufacturing, construction, energy and mining
sectors continue to attract new business investment and labour.
Agriculture producers are looking for solid returns this year, which
will bode well for economic activity." 
Job growth has been sturdy over the past year, with employment up a
modest 0.9 per cent in 2012. "A diverse economy, along with a
relatively tight labour market with the third-lowest jobless rate in
Canada at 5.2 per cent, continues to attract international migrants,"
noted Mr. Kavcic. "While population growth has cooled in the past
year at just below 1 per cent year-over-year, it remains elevated by
historical standards." 
The Province of Manitoba revised its deficit forecast to $567 million
in fiscal 2012-2013 (ab
out 1 per cent of GDP) from $460 million
projected in this year's budget. Total revenues are tracking $45
million (0.3 per cent) better, largely due to higher individual and
corporate income tax receipts. Finance Minister has hinted that the
Province will likely have to push back its balanced budget target by
two years to 2017 - look for detailed forecasts in the spring (fiscal
2013-2014) budget.  
The full Provincial Monitor can be downloaded at
www.bmocm.com/economics. 
About BMO Financial Group  
Established in 1817 as Bank of Montreal, BMO Financial Group is a
highly diversified North American financial services organization.
With total assets of $525 billion as at October 31, 2012, and more
than 46,000 employees, BMO Financial Group provides a broad range of
retail banking, wealth management and investment banking products and
solutions.
Contacts:
Media contact:
Peter Scott, Toronto
(416) 867-3996
PeterE.Scott@bmo.com 
Internet: www.bmo.com
Twitter: @BMOmedia