Great Lakes economy rebounding

Economic activity in the Great Lakes region had returned to pre-recession levels, says a report on the area from BMO Economics.

“The Great Lakes region is a major driver of the North American economy,” said Doug Porter, BMO Capital Markets chief economist. “With economic output of US$4.7 trillion in 2011, the region accounts for 28% of combined Canadian and U.S. economic activity. It would rank as the fourth largest economy in the world if it were a country, behind only the U.S., China and Japan.”

Read: Investing in a “blue economy”

Though the area was hit by the flat-lined auto sector, Porter said “global demand for machinery and equipment has firmed and the service sector remains sturdy.” Employment in education and healthcare industries also grew by 23% and professional services increased by 12% to balance the hard-hit manufacturing sector that is down 25% from a decade ago.

For trade to move more freely, U.S. and Canadian governments initiated the Beyond the Border Action Plan, which counteracts post-9/11 border restrictions. Steps include higher threshold values for speedier customs clearance, preclearance processes for commercial cargo and improved border infrastructure, cites the BMO report.

Read the full report, called Great Lakes Region, North America’s Economic Engine

Staff

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