Ontario has suffered from high infection rates and lockdown measures. However, its economic recovery will meet the national forecast with 5.0% growth, taking the lead nationally later in the year as vaccinations take effect. Housing and consumer spending will play a key part in the provincial economy.
Quebec will also see improvement in the second half of the year as the COVID impacts ease. BMO expects growth of 4.8% for 2021.
In the Prairies, improved conditions for the energy markets will boost Saskatchewan to a 4.4% growth rate while Manitoba’s diversified economy will help it shake of tougher restrictions for 4.6% growth in real GDP.
Meanwhile, although Atlantic Canada has coped relatively well with the pandemic from a healthcare perspective, some industries such as leisure and tourism have suffered badly in the past year.
BMO notes that Atlantic Canada’s pre-pandemic population boom, a key economic booster, has stalled and there is no certainty of when that might resume.
Source – Wealth Professional
