Modest Economic Growth Forecast For Provinces

Canadian provinces will see limited growth throughout the remainder of 2023, says the Conference Board of Canada. “Despite the signs pointing to slow economic performance this year, the worst-case scenarios of a deep recession or highly destabilized labour and capital markets are becoming less likely,” says Ted Mallett, director, economic forecasting at the Conference Board of Canada. A report by the board says Ontario’s gross domestic product (GDP) is expected to grow 0.5 per cent in 2023. Sectors such as professional, scientific, and technical services will see growth above the national rate, while the manufacturing sector will contract in 2023 due to slower global demand, particularly in the durables sector. Quebec’s GDP growth is forecast to be 0.2 per cent in 2023, with monetary policy filtering through to several areas of Quebec’s economy, notably investment and consumption. Demand for housing in the province is waning in response to higher interest rates. British Columbia’s GDP is anticipated to expand by 0.4 per cent in 2023. Exposure to higher debt costs is of concern in British Columbia, where household indebtedness is among the highest in Canada. Alberta’s GDP is likely to see a growth of 2.1 per cent in 2023, as high commodity prices are expected to be a contributing factor. Saskatchewan’s GDP is expected to expand 1.6 per cent in 2023, as the mining and agriculture sectors are expected to be drivers of growth. Manitoba, Prince Edward Island, Nova Scotia, New Brunswick, and Newfoundland and Labrador are projected to see GDP increases in 2023 of 0.9 per cent, 0.9 per cent, 0.3 percent, 0.1 per cent, and 2.2 per cent, respectively.