Manitoba's economic growth to maintain speed: RBC Economics

TORONTO, June 19, 2013 /CNW/ - Manitoba's economy is expected to stay the 
course in 2013, reflecting an anticipated strengthening in growth in 
manufacturing and utilities, according to the latest RBC Economics Provincial 
Outlook released today. RBC forecasts a provincial real GDP growth rate of 2.7 
per cent, matching that of 2012. 
RBC notes that Manitoba's economic growth last year was mainly driven by a 
recovery in agricultural production and a double-digit gain in the mining 
sector. In 2013, these sectors will continue to grow, albeit at a slower pace; 
the agricultural sector is projected to grow at 4.0 per cent, down from almost 
15 per cent in 2012, while mining is expected to register only 6.0 per cent 
growth, about one-half the rate achieved last year. 
"The expected slack in Manitoba's economy from easing agricultural and mining 
output this year will be tightened by strong gains in utilities and 
manufacturing - the sectors projected to drive provincial growth this year," 
added Craig Wright, senior vice-president and chief economist, RBC. 
RBC says that the improved financial health of U.S. state and local 
governments should increase demand for public transit vehicles, a key 
manufacturing export of Manitoba. This demand, along with a generally stronger 
U.S. economy, is expected to help boost manufacturing sector growth by 3.0 per 
cent and 3.5 per cent in 2013 and 2014, respectively, relative to negligible 
growth in 2012. 
With respect to the utilities sector, RBC anticipates gains of 2.0 per cent in 
2013 and 4.0 per cent in 2014, following a 5.0 per cent decline in 2012. 
Looking ahead to 2014, the projected gains in utilities and manufacturing will 
continue, which, along with gains in the construction sector, will maintain 
Manitoba's growth at 2.6 per cent. 
Construction spending will be a mainstay of growth through the forecast, 
despite slowing in residential construction this year and next. RBC 
anticipates housing starts will decline to 6,700 units in 2013 and 5,700 in 
2014, down from 7,200 in 2012. Balancing out this slowing trend will be a 
number of non-residential construction projects - various office, hotel and 
condo developments in Winnipeg, and the expansion of the Winnipeg Convention 
Centre - which will support solid construction output growth of 5.5 per cent 
this year and 6.0 per cent in 2014. 
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 as of 8 a.m. ET today at 
rbc.com/economics/market/pdf/provfcst.pdf. 
Craig Wright, RBC Economic Research, 416 974-7457 Paul Ferley, RBC Economic 
Research, 416 974-7231 Elyse Lalonde, RBC Corporate Communications, 416 
842-5635 
SOURCE: RBC 
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CO: RBC
ST: Ontario
NI: FIN ECO ECOSURV  
-0- Jun/19/2013 09:00 GMT
 
 
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