Great News for the Halifax Real Estate Market!!!!
Halifax will post the strongest economic growth rate this year among metropolitan areas east of Manitoba at 2.4 per cent, the Conference Board of Canada said Monday.
In a report entitled Metropolitan Outlook for Autumn 2008, the board cited an expanding manufacturing sector, increasing non-residential construction and solid gains in the services sector as drivers of economic growth in Halifax this year.
Buoyed by their strongest rates of economic growth in more than a decade, Saskatoon and Regina rank first in terms of economic growth among Canadian census metropolitan areas, the board said.
“Saskatoon will lead Canadian CMAs in economic growth for the second consecutive year,” Mario Lefebvre, the board’s director for municipal studies, said, referring to major metropolitan areas.
To some extent, Halifax’s performance gets an impressive ranking mostly because of poor results in other major eastern metropolitan areas.
However, a number of factors are coming together to contribute to a positive economic outlook for the city, Mr. Lefebvre said in an interview.
He said manufacturing remains robust in the city, despite problems with this sector in other jurisdictions, and the population of Halifax continues to increase at a healthy pace.
“This allows for increased housing activity and also increases the number of people in shopping malls,” he said.
He said the metropolitan area’s anticipated 6.8 per cent increase in retail sales for 2008 stands on its own as an indicator of a robust economy.
The services sector in Halifax will grow by about 2.5 per cent in 2008 and an additional 2.8 per cent in 2009, the board said.
The biggest increases in Halifax for the year will be in the wholesale and retail trades and in finance, insurance and real estate.
“The economy is experiencing relatively broad-based growth this year, with all sectors save primary (industries), utilities and public administration expanding solidly,” reads one part of the report.
Several major construction projects slated for the downtown core are singled out by the board as contributors to solid economic performance in the city.
Some big commercial projects factored into the positive economic forecast, including Centennial Properties’ estimated $70-million hotel, condo and shopping development and a $250-million twin office tower complex to be built by United Gulf Developments.
The conference board notes public and administrative output is forecast to increase significantly next year as some cash from Nova Scotia’s agreement with Ottawa on offshore royalties finds its way into energy research, university infrastructure and protection of public land.
Quebec City experienced economic growth of 3.1 per cent in 2007 but is forecast to grow by a more moderate 2.3 per cent in 2008, mostly due to weakness in the goods-producing industries, especially manufacturing and construction.
The report notes economic growth in Montreal is projected to reach just 1.7 per cent in 2008, the lowest rate in five years, while a hobbled manufacturing sector in Toronto is expected to limit economic growth in that metropolitan area to 1.3 per cent.
Taken from The Chronicle Herald.
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Andrew Perkins
Your Halifax Real Estate Expert
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Eric Hundin