Sault to experience ‘modest growth’ in 2017 and 2018, report says

The Conference Board of Canada released its latest Mid-Sized Cities Outlook Thursday, in which projections for the economic growth of eight Canadian cities, including Sault Ste. Marie, are made.

The Sault’s GDP (gross domestic product) growth is projected to be 0.6 per cent in 2017 and 0.9 per cent in 2018, the Conference Board states.

That may not seem like much, but the report considers it “a welcome change from the flat readings of the last two years.”

The Sault’s construction sector is poised to return to positive output growth this year, after suffering shrinkage for five of the past six years, the report reads.

“Things are also looking up for the manufacturing sector, which has struggled since 2012.  Output is forecast to stabilize this year and grow by 0.6 per cent in 2018,” the report adds.

The Conference Board states there will be “decent performances” in wholesale and retail trade (in spite of job losses from the closure of Sears) while finance, insurance and real estate will perform moderately well.

Because of these factors, employment is projected to grow by 2.8 per cent in the Sault this year, though the Conference Board states “there are downside risks to this outlook.”

Timmins, the only other mid-sized Ontario city examined in the Conference Board’s report, will be “on a path of stable and moderate growth,” thanks to positive developments in the mining sector.

The Sault, Timmins, along with the Alberta cities of Medicine Hat, Red Deer and Lethbridge, as well as Brandon, Manitoba, Prince George, BC, and Miramichi, New Brunswick, were the eight mid-sized cities profiled in the Conference Board of Canada’s report.

The Alberta cities are faring better thanks to recovering oil prices, the report stated.