Hot construction sector boosting Canada’s economy
Canada's economic performance map is being fundamentally reshaped by concurrent booms in the resource and construct...
Canada’s economic performance map is being fundamentally reshaped by concurrent booms in the resource and construction sectors, according to Scotia Economics’ latest report, “Provincial Trends – Capitalizing on Canada’s Commodity Bonanza.”
Meny Grauman, an economist with Scotiabank, noted: “Much of this strength reflects the persistently strong demand and sky-high prices for commodities that have been triggered by the rapid economic advances in many of the developing nations …”
She also noted that non-residential construction activity is “ramping up” across Canada, thanks both to the expansion of resource supplies and the “multi-year surge in public and private sector infrastructure spending that is being underwritten by buoyant corporate and government revenues.”
From a regional perspective, the Scotia report suggests, the best performances will be in Alberta where the massive expansion of the Athabasca tar sands is advancing, in B.C. where the province’s varied energy and mining resources are being tapped alongside construction for the 2010 Olympics, and in Newfoundland and Labrador, where land and sea-based commodity ventures are building momentum.
The economists suggest that Central Canada will remain in the relative slow lane of growth. While Ontario’s advance will be paced by its larger and stronger service-related activities, and Quebec’s by ramped up energy-related investments, the large manufacturing sectors of both provinces face ongoing competitive challenges from lower-cost jurisdictions overseas and a strong Canadian dollar.
“Provincial Trends – Capitalizing on Canada’s Commodity Bonanza” is available on www.scotiabank.com