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Vancouver to lead economic growth in 2010

Posted in : Gossips

(added few years ago!)

The Olympic flame will continue to contribute to the healthy glow in Vancouver's economy through the rest of this year, with the boost from the Winter Games helping it outpace all other Canadian cities in terms of economic growth, according to a Conference Board of Canada report released Wednesday.

The Olympics pumped an estimated $600 million into the West Coast city's economy, which should grow by four per cent, the board said in its latest metropolitan outlook, which forecasts growth for 13 Canadian cities. "The Olympic Games provided a big, even if temporary, boost to retail trade, arts, entertainment and recreation, accommodation and food services in Vancouver," Mario Lefebvre, the Conference Board's director of municipal studies, said in a statement.

"All in all, the Olympics injected about $600 million into the Vancouver economy, lifting growth by about 0.8 percentage points. "On top of that, demand for new homes in Vancouver began to recover at the end of last year, and that momentum has carried over into the first couple months of 2010."

Halifax, the only city in the board's survey to have posted GDP growth amid the economic downturn last year, will move to the middle of the pack this year with growth of 2.5 per cent, as larger cities benefit more from a recovery in the manufacturing and construction sectors, and -- in 2010 at least -- continued federal stimulus spending, the board said.

The Ontario cities of Toronto and Hamilton, hit particularly hard by the recession, will take second and third place, respectively, behind Vancouver.

The board forecasts 3.7-per-cent growth in Toronto, Canada's largest city, and 3.3 per cent in Hamilton.

Victoria is in fourth place with expected growth of 3.2 per cent in 2010 based on renewed demand in the services sector, increased consumer spending and recovery in construction and manufacturing.

Edmonton rounds out the top five for 2010, with construction growth leading it to a 2.9 per cent increase in GDP this year.

The board warns that Ottawa-Gatineau's 2.8 per cent growth this year -- which puts its ranking at seventh -- will slow two per cent in 2011 as federal government spending restraint takes hold.

The Conference Board predicts the national capital region will lose 10,000 government jobs over the next three years, contributing to a last-place ranking among Canada's 13 biggest cities for economic growth over that time.

Calgary is tied with Ottawa-Gatineau in the seventh-place ranking for this year with growth also expected at 2.8 per cent. Construction and services activity is expected to help the city recover somewhat from last year's downturn in the energy sector.

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(added few years ago!) / 121 views