Northern Ontario's economic future is beginning to brighten, according to an annual report from the Conference Board of Canada.
In its annual report, the board looked at growth numbers for both Timmins and Sault Ste. Marie; saying both cities should see growth in the coming year.
Timmins is ahead of the Sault with solid numbers. Real GDP increased by 1.3 per cent in 2016 and its forecasted to average slightly stronger growth of 1.5 per cent over 2017-18.
"The Timmins economy remains on a path of stable and moderate growth," reads the report.
"Output in both the manufacturing and the primary and utilities sectors will rise at a healthy pace this year, boosted by a low Canadian dollar, recovering gold prices, and several positive developments in the mining sector. While the local workforce has not shared in recent economic gains, employment is forecast to pick up this year. This turnaround will support household consumption and thus help spur a 1.8 per cent increase in wholesale and retail trade output in 2017. The unemployment rate is projected to fall from 7 per cent in 2017 to 6.2 per cent by 2018."
Meanwhile, more marginal success is expected in Sault Ste. Marie, with export industries beginning to stabilize and grow.
"Sault Ste. Marie’s real GDP growth is expected to come in at 0.6 per cent in 2017 and 0.9 per cent in 2018—a welcome change from the flat readings of the last two years," reads the report.
"The construction sector is on track to return to positive output growth this year, following contractions in five of the past six years. Things are also looking up for the manufacturing sector, which has struggled since 2012. Output is forecast to stabilize this year and grow by 0.6 per cent in 2018. Meanwhile, decent performances in wholesale and retail trade and in finance, insurance and real estate will drive moderate services activity. As such, employment is projected to grow by 2.8 per cent this year, though there are downside risks to this outlook."
Overall, the board says the Canadian economy is finally starting to show signs of recovery.
"We're seeing stronger growth in Ontario cities as well," said Alan Arcand, Centre for Municipal Studies associate director.
"It's really export led recovery that we're finally starting to see. We've been waiting for improvement on the trade side and we're finally starting to see it this year."
The board worked with a handful of communities across the country to ascertain a broader idea of the economic future of both small and large Canadian cities.
