Lower growth for 5 provinces: DBRS

Five provinces are expected to see lower real GDP growth in 2017 than 2016, according to DBRS private sector consensus data.

Those provinces are B.C., Manitoba, New Brunswick, P.E.I. and Newfoundland, with Newfoundland seeing the largest dip from 1.9% in 2016 to -2% in 2017 — that compares to nominal GDP growth of 2.4% in 2017, which is still set to be the lowest out of the provinces. Statistics Canada data indicates the province had the highest unemployment rate, at 13.4%, in 2016.

As a result, Newfoundland and P.E.I. are the lowest-rated provinces, at R-1 (low) for short-term debt and A (low) for long-term debt. B.C. and Alberta are the highest-rated, with both boasting R-1 (high) short-term ratings and AA (high) long-term ratings.

B.C. is one of the provinces set to lead real GDP growth in 2017 at 3% annual growth. DBRS predicts Alberta will come out on top at 3.1%, while Ontario and Quebec will trail at 2.8% and 2.3%. In terms of unemployment rates for 2016, these four provinces’ rates range between 6% (B.C.) and 8.1% (Alberta).

Also read:

When Canada’s rebound will lose steam

Pace of inflation slows in June

Why Canada’s recovery is still tenuous: IMF

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.