Winnipeg going strong

September 14, 2007
Winnipeg Sun
Written by: Paul Turenne

Ranked third-fastest growing city economy

The new Manitoba Hydro building rises over downtown Winnipeg. Only Saskatoon and Calgary outstripped the city in growth. (MARCEL CRETAIN/ SUN MEDIA)

Winnipeg has the third-fastest growing economy among Canada's major cities, according to a report released yesterday by the Conference Board of Canada.

The Ottawa-based, market-oriented think tank forecast real gross domestic product (GDP) growth for 13 of Canada's largest cities for the year 2007, pegging Winnipeg's real GDP growth at 3.7%, its strongest growth since 1998.

Real GDP measures the total value of goods and services produced, adjusted for inflation.
Only Saskatoon, at 4.7%, and Calgary, at 4.4%, were forecast by the Conference Board to have faster growing economies this year.

IMMIGRANTS

"You're getting a very strong overall picture in Winnipeg," said the Conference Board's Mario Lefebvre. "It's not just a rosy year where you can point to one element and say 'it's because of this.' I think the fundamentals are sound."

Lefebvre said Winnipeg's economy has been bolstered by the province's efforts to attract international immigrants, which has led to an increased rate of population growth. Population growth means more demand for housing, furniture, appliances, and other retail goods.

Housing starts and other construction mega-projects like the new airport terminal and the floodway also have huge spinoff effects.

EAST-WEST DISPARITY

Fletcher Baragar, an associate economics professor at the University of Manitoba, said other elements beyond the province's control, like high commodity prices and low interest rates, have also been good for Winnipeg.

Baragar said the city's economy is in pretty good shape, although the effects of a high Canadian dollar on the city's manufacturing sector remain to be seen, as do the effects of the mortgage crunch in the U.S.

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