A report from the Conference Board of Canada predicts that Hamilton’s economy will be among the fastest growing outside of Alberta this year.
It says real gross domestic product (GDP) growth in Hamilton is expected to reach 2.9 per cent this year. That’s higher than the national forecast of 2.6 per cent.
The findings were published Tuesday in the organization’s fall outlook on the economies of 13 Canadian cities.
According to the report, the gains in Hamilton’s economy are being driven by growth in several industries, including construction, wholesale and retail trade, personal services and public administration.
The report says the reduction in housing starts this year will be more than offset by investment in other areas.
Employment is expected to grow at a rate not experienced since 2003, with over 19,000 net new jobs created in 2017.
“The impressive GDP performance this year is being reflected in a hot labour market,” the report stated.
But the board warns that Hamilton’s GDP, along with the Canadian average, is set to slow to two per cent next year.
Hamilton’s labour market growth is also expected to weaken to 2.1 per cent, the equivalent of 8,500 jobs, the report says.
The unemployment rate, however, is expected to be at 5.8 per cent for 2018, down from the current 6.1 per cent.
The report named Toronto’s economy as the fastest-growing outside of Alberta.
“Toronto’s economy was firing on all cylinders during the first half of 2017, but growth has moderated since then and this trend will continue through 2018, as government housing market cooling policies have their desired effect,” Alan Arcand, associate director of the Conference Board of Canada’s Centre for Municipal Studies stated in a media release.
“Likewise, Hamilton’s economy is enjoying strong growth this year, but slower growth looms.”
— With files from Kerri Breen
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