Manitoba's economic growth to stay the course in 2013: RBC Economics
TORONTO, March 19, 2013 /CNW/ - Increased capital spending along with
strengthening U.S. demand for Manitoba's manufacturing and utilities exports,
will contribute to the province holding the steady, solid course that it has
been treading since early 2012, according to the latest RBC Economics
Provincial Outlook released today. RBC forecasts the real GDP growth in 2013
to be 2.7 per cent, matching that of 2012.
Following a banner year for agriculture that saw output increase and prices
swell due to a drought south of the border, RBC expects the province's
agricultural output to grow less rapidly in 2013.
"While we don't anticipate agriculture to be the same driving force that it
was in 2012, improved strength in construction, manufacturing and utilities
will provide positive offset and ensure that Manitoba remains on the same
economic course it was last year," said Craig Wright, senior vice-president
and chief economist, RBC. "These supportive factors will continue to present
themselves next year and should sustain overall growth in the province."
A recent Statistics Canada Private and Public Investment survey indicated that
capital spending in the province will continue to grow as businesses indicated
they plan to boost their capital outlays by 8.5 per cent. This underscores
RBC's projected increase in construction spending of five per cent in 2013,
which factors in a number of projects including ongoing and newly announced
construction activity related to a number of new buildings in downtown
Winnipeg, including the expansion of the Winnipeg Convention Centre.
U.S. demand for imported goods and services should strengthen, supporting
improvements in Manitoba's utilities and manufacturing this year and next. RBC
expects utilities output to increase by two per cent and four per cent for
2013 and 2014, respectively, while manufacturing output will grow three per
cent this year and 3.5 per cent next. Gains in manufacturing will mostly be
concentrated in transportation equipment, including aerospace and buses, and
RBC notes that the upbeat scenario for the provincial economy also reflects
solid farm income growth with agricultural prices expected to remain
historically high through the forecast.
The RBC Economics Provincial Outlook assesses the provinces according to
economic growth, employment growth, unemployment rates, retail sales, housing
starts and consumer price indices. The full report and provincial details are
available online of 8 a.m. ET today at
Craig Wright, RBC Economics Research, 416 974-7457 Paul Ferley, RBC Economics
Research, 416 974-7231 Elyse Lalonde, Communications, RBC Capital Markets, 416
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-0- Mar/19/2013 09:00 GMT
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