November 20, 2018 12:08 pm

Hamilton’s economy among Canada’s strongest: Report

The latest Conference Board of Canada report has high praise for Hamilton's economy.

Nick Westoll
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The latest Conference Board of Canada report predicts Hamilton will be among Canada’s strongest economies this year.

Its Metropolitan Outlook for Autumn 2018 says while the city’s economic growth is moderating, the Hamilton Census Metropolitan Area will “be a growth leader among major Canadian cities this year, ranking behind only Montreal and Winnipeg.”

It says Hamilton’s steel industry continues to face uncertainty, but high steel prices are mitigating some of the impact from tariffs imposed by the U.S.

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The report suggests the manufacturing sector will wrap up the year with a solid expansion before moderating in 2019.

Growth is also set to slow this year and next in the city’s services sector, as rising interest rates and the federal mortgage stress test will limit growth in the housing market, as well as the finance, insurance, and real estate sectors.

READ MORE: U.S. automakers plead with Trump administration to end steel, aluminum tariffs

Hamilton’s economy is forecast to shrink to 1.9 per cent in 2019 from 2.6 per cent this year.

“For the first time since records began in 1987, Montreal will boast the fastest growing metropolitan economy this year among the 13 cities covered in this edition of our report,” said Alan Arcand, associate director, Centre for Municipal Studies. “The local economy is enjoying widespread gains this year, accompanied by continued robust job creation and solid income growth. But like most other cities in Canada, economic growth is set to moderate in Montreal in 2019.”

© 2018 Global News, a division of Corus Entertainment Inc.

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