BMO has released a report, the BMO Blue Book, which outlines local markets across the country. Unsurprisingly, both Alberta and Saskatchewan are set to lead the pack, with GDP growth expected at 3.0 and 2.9 percent, respectively. Newfoundland and Labrador is also set for a bull market, and led the country last year with a growth of 3.8 percent in GDP. Economist Robert Kavcic writes in the guide, “Strength in the energy sector has rekindled in-migration and helped firm up the labour market. With the recent growth spurt, measures of cost pressure and capacity constraints are picking up, but remain far from the extremes of the last boom.” The market is projected to slow this year as investments level off and oil production decreases.
The guide looks at local economies through the lens of GDP: employment, manufacturing, and commercial activity. When GDP is strong, the housing market reflects this due to increased job opportunity, housing developments and emigration. — Vernon Clement Jones, Canadian Real Estate Wealth.
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