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Manitoba’s Economy Expected to Grow in 2011

January 12, 2011 10:25 AM | News

By Sarah Klein

Manitoba’s economy is expected to grow by 2.7 percent in 2011, according to data released Wednesday by BMO Capital Markets Economics.

The Provincial Outlook report says the province’s economy was held back in 2010 due to wet weather affecting the agriculture sector, but is on pace to bounce back by the end of this year.

Looking forward, the report states the province’s diverse sector makeup and exposure to a wide range of commodities should continue to slowly grow, but reach sturdy economic growth

“Manitoba finished 2010 with Canada’s lowest unemployment rate of 5.2 percent, and population growth has picked up to 1.6 percent year-over-year,” said Robert Kavcic, Economist, BMO Capital Markets. “Winnipeg house prices are currently seeing among the fastest growth rates among Canada’s major cities, up 12.2 percent year-over-year in November.”

The Province of Manitoba is projecting a $471 million summary deficit in fiscal 2010/2011, an improvement from the $545 million shortfall projected in the budget.