Halifax has done a pretty good job in rebounding from the recession so far – but one economic think tank is predicting a slowdown in 2011.
The Conference Board of Canada expects the city’s economic growth will ease to 2.5 per cent this year – a full percentage point lower than 2010.
“It is a lot, but it’s in the context of the post-recovery economy,” said economist Jane McIntyre. “We had better than normal growth last year because of the rebound in the global economy, so what we’re seeing now is a more normal level of growth.”
McIntyre tells News 95.7 the slowdown in federal stimulus spending will play a big role in this year’s contracting economy, among other factors.
“This year we’re going to see a slowdown in the housing market, with tighting mortgage rules and rising interest rates toward the end of the year,” she said.
But McIntyre says there’s no need to panic, as economic performance is still quite strong in a number of areas.
“The manufacturing sector is doing quite well, and even though we have the slowdown on the housing side of the construction sector, the non-residential sector is still doing well,” she said. “There’s lots of projects still on the go.”
Windsor, Ont. is expected to have the strongest economic growth this year with a 3.9 percent increase in real gross domestic product.