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This article was published 26/5/2017 (1211 days ago), so information in it may no longer be current.

A revitalized manufacturing sector and an expanding services sector will help keep Winnipeg’s economy growing at a solid pace over the next two years, according to the latest forecast from the Conference Board of Canada.

In its Spring Metropolitan Outlook report released Thursday, the Ottawa-based think-tank predicts the Winnipeg economy will grow by 2.2 per cent this year and 2.3 per cent in 2018. That’s only slightly below the average annual growth rate for the previous seven years, which was 2.4 per cent.

The board also predicts this year’s growth rate will be the sixth highest among the 13 Canadian cities covered in its report. Last year, it had the fourth best real gross domestic product (GDP) growth, at 2.4 per cent.

The board noted the rebound in manufacturing output began in 2016 and that recovery should accelerate this year with growth of 2.1 per cent, followed by 2.2 per cent growth in 2018.

"A weak Canadian dollar, a healthy U.S. consumer and strength in the transportation market will be the key growth drivers," it added.

Some of the local manufacturing success stories it cited were International Truck Body, a specialty truck manufacturer that won a contract to make 200 truck bodies for a Minnesota-based uniform service and facility supplies company, and bus-maker New Flyer Industries, which saw a 47.8 per cent increase in revenues last year and a 131.7 per cent jump in profits.

"The pickup in activity will be good news to the (manufacturing) sector’s workers, who endured back-to-back annual declines in employment over 2015-16, which were added onto significant job losses during and following the 2008-09 recession," it added.

The board predicted Winnipeg’s services sector will see its output grow 2.5 per cent this year and by 2.6 per cent in 2018. That’s up slightly from 2.4 per cent growth in 2016.

"Decent tourism activity, a solid U.S. economy and a weak Canadian dollar will bolster gains in wholesale and retail trades and in personal services," it said. "Solid growth is also expected from the transportation and warehousing sector, which will benefit from higher demand for its services from a strengthening manufacturing industry."

The board also noted the city’s retail sector should benefit from this month’s opening of the region’s only factory outlet mall — the 400,000-square-foot Outlet Collection Winnipeg mall in southwest Winnipeg.

Despite an anticipated decline in multi-family housing starts, the board said a busy non-residential sector should help boost construction output by two per cent this year and by 1.8 per cent in 2018.

"The outlook for Winnipeg’s labour market is also positive, as job growth is forecast to come in at a decent 1.0 per cent in 2017," it added.

"The job gains will come entirely from the services-producing industries, as job growth in the goods sector is expected to remain virtually flat this year."

murray.mcneill@freepress.mb.ca