Cities Facing Slower Growth Amid High Inflation

The economies of most major cities across Canada are weathering soaring inflation and high interest as they recover from the impacts of COVID-19, says ‘Major City Insights’ from the Conference Board of Canada. “Major cities across Canada are bouncing back while facing some headaches including ongoing supply chain issues and other challenges sparked by the pandemic,” says Jane McIntyre, principal economist at the Conference Board. “We’re already seeing some of the steam being taken out of the housing markets in bigger cities as interest rates have slowed consumer spending.” The report says Saskatoon, SK, will see a strong economic recovery buoyed by a surge in the agriculture sector and will outpace all other major cities in Canada this year, with real GDP expected to grow by 7.2 per cent in 2022 and a further 3.9 per cent in 2023. Edmonton, AB, will be driven by its thriving energy sector and its real GDP is projected to reach 4.9 per cent in 2022, but moderate to 3.3 per cent in 2023. After some flooding in May, overall better weather and stronger prices are helping fuel a recovery in Winnipeg, MB’s agri-business this year, boosting economic activity. This will help boost the city’s anticipated real GDP to four per cent in 2022. As for Toronto, ON, it has done well in its economic recovery with real GDP forecasted to reach 3.8 per cent in 2022 before settling to a more modest pace of 2.1 per cent in 2023. In Nova Scotia, Halifax’s strong recovery from the pandemic-induced economic contraction will continue through the remainder of the year, as real GDP is projected to reach 3.2 per cent in 2022 before slowing to two per cent in 2023.