Guelph Economy Still Strong

July 24, 2008

Jobs & the Economy

While Guelph has had its share of manufacturing losses over the last few months and we can never take lightly the impact on those who have lost their jobs, it is good to read overall our City and region is doing better than most.  This news is a testament to our local businesses and entrepreneurs.

 

Growth in Waterloo-Guelph Area Will Exceed Rates in Both Ontario and Canada – BMO Capital Markets

 

Area’s economy still enjoys solid underpinnings, with unemployment below and incomes above provincial and national benchmarks

 

KITCHENER-WATERLOO, ON, July 22 /CNW/ – With youthful demographics, strong educational institutions, and its diversified industrial mix, the area encompassing the Waterloo Region and Guelph should perform well as the broader North American economy remains slow, according to a new report from the BMO Capital Markets Economics Department.

   

“Waterloo-Guelph has developed a reputation for innovation,” said Dr. Sherry Cooper, Chief Economist, BMO Capital Markets. “Its entrepreneurial spirit has allowed it to reinvent itself over the years. Old companies close their doors, but new ones are continually opening up.

   

“Waterloo-Guelph is leading the charge from the old economy based on traditional manufacturing to the new economy based on high technology manufacturing and services,” stated Dr. Cooper.

   

The Waterloo Region (which includes Kitchener, Waterloo, and Cambridge) and Guelph have endured a couple of challenging years. The local economy has grappled with the surge in the Canadian dollar, a pronounced drop in U.S. auto demand, and record energy prices. Along with rising competition from China, these forces have all weighed heavily on the Region’s manufacturing base.

           

Even so, the area’s economy still enjoys solid underpinnings, with unemployment below and incomes above the provincial and national benchmarks.

  

“Through the second half of this year and into 2009, the area’s economy will continue to face the challenges of a high Canadian dollar and weak U.S. demand,” according to Dr. Cooper. “Nonetheless, the economy should see the start of a turnaround next year, and then enter a period of strong growth by  2010. We expect real GDP growth of 0.5 per cent in 2008, but closer to 2 per cent next year.

   

“Once the current weakness passes, we expect growth in Waterloo-Guelph to exceed both the Ontario and Canadian rates over the 2009-12 period,” she said.

   

The complete report can be found at www.bmocm.com/economics.

 

 

For further information: Media Contacts: Peter Scott, Toronto,

PeterE.Scott@bmo.com, (416) 867-3996; Paul Gammal, Toronto,

paul.gammal@bmo.com, (416) 867-3996; Internet: www.bmo.com

About Karen Farbridge

An unwavering change maker seeking a just, democratic and sustainable world.

View all posts by Karen Farbridge

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