Abbotsford is leading the way...

Written by:
Paul Luke, The Province
Published: Thursday, June 26, 2008
www.canada.com/theprovince/news/money/story.html

Abbotsford will command the highest growth rate among 14 small and mid-sized cities across the nation this year, the Conference Board of Canada says.

But even Abbotsford's GDP will be touched by the illness in Canada's manufacturing sector, the board said yesterday.

"The ongoing downturn in the manufacturing sector is dragging down economic growth in Canada's small and mid-sized census metropolitan areas," board economist Alan Arcand said.

"All CMAs except for Thunder Bay and Saguenay are expected to post slower growth this year."

At 2.5 per cent, Abbotsford is one of only three small to medium-sized urban areas that will post GDP growth above two per cent in 2008, the board said yesterday.

That's down from growth of 2.7 per cent last year, and from 3.7 per cent in 2006, the board said.

Abbotsford's economic growth this year will be slowed by weak output in wood-products manufacturing.

A 6.6-per-cent rise in construction output in 2008 won't quite offset this weakness but will keep Abbotsford's economy ahead of the pack nationally, the board said.

"On the residential front, new home construction is set to post an increase in 2008, thanks to a tremendous start to the year," the board said.

"Builders are expected to break ground on 1,200 units for the year as a whole, an increase of 12.3 per cent over 2007," it said.

Abbotsford's non-residential building side will remain robust, stoked by work on the $382-million Abbotsford hospital, the $43-million Mission and Matsqui-area electrical substations and $108-million worth of new community centres.

Over the medium term, the proposed $100-million expansion of Abbotsford airport and the $55-million Exhibition Park Arena and Sports Complex will drive non-residential building, the board said.

Abbotsford's growth should rise to 2.9 per cent in 2009 and 3.0 per cent in 2010 and 2011, it said.

Only Abbotsford, Trois-Rivieres and Saint John will post GDP growth of more than two per cent this year, the board said.

The board blames Canada's drop in manufacturing output on a high loonie and an ailing U.S. economy.

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