Hamilton – Burlington, ON, Dec 10th, 2015: The most wide-reaching provincial economic forecast of the year, the Ontario Economic Update 2016, was released today by the Ontario Chamber of Commerce and the Credit Unions of Ontario, with support from Hamilton and Burlington Chambers of Commerce. The Hamilton Census Metropolitan Area (CMA), which is made up of Hamilton, Burlington, and Grimsby, will experience above-trend employment growth during the next two years, reflecting the end of the major restructuring in the manufacturing sector.

The report finds that employment in the Hamilton-Burlington Area (also known as the Bay Area) is projected to rise by 1.1 percent by the end of 2015, down from a 2.4 percent growth rate in 2014. Despite this year’s slowdown, the CMA is poised for more robust growth in the coming years, when employment is expected to grow at a rate of 1.5 percent. Contributing to the area’s economic fortunes are the low Canadian dollar and faster U.S. growth. Manufacturing, tourism, and transportation services stand to benefit from more favorable external conditions. Domestic sectors such as construction, real estate, and retail trade will gain from low interest rates and an improvement in economic conditions.

“It was interesting to see the data highlight the shift we have observed concerning to the tremendous growth of knowledge economy and service industries in our communities. With the right support, Advanced Manufacturing, Life Sciences and ICT – Digital Media clusters will shape the future of our economy,” said Keanin Loomis, President & CEO of the Hamilton Chamber of Commerce. “Our work with Burlington will continue to shape the Bay Area to be one of Canada’s most diverse regional economies, buffeting us from the volatility of the global resource economy,” added Loomis.

The Hamilton-Burlington Area’s robust housing market activity will extend into 2016 and 2017 with a slight slowing in the pace of annual gains likely. The Hamilton-Burlington MLS® residential sales in 2015 will settle at 15,500 units and exceed the previous record. Sales will continue to set new highs in 2016 and 2017 to reach 17,500 units. The average sale price will also set new highs each year, hitting $500,000 in 2017. New construction will follow higher sales and prices. Supported by current and planned regional rapid transit links, The Bay Area is emerging to be an affordable alternative to higher housing and land prices in the GTA.

“Growth is coming to the Bay Area,” said Keith Hoey, President & CEO, Burlington Chamber of Commerce. “The challenge now is to ensure we supplement intensified residential development with job and commercial growth, and that we have the adequate transportation infrastructure for goods and people in our communities,” added Hoey.

---

Allan O’Dette, President & CEO of Ontario Chamber of Commerce: “Ontario businesses are helping Ontario emerge stronger from the downturn. However, our economy still faces significant challenges. In order to generate sustained economic growth, government must invest in infrastructure, close the skills gap, and ensure that input costs do not stifle investment or job creation.”

Helmut Pastrick, Chief Economist, Central 1 Credit Union: “Ontario and its regional economies will grow at a moderate but faster pace through 2017 aided by favorable external factors such as the low dollar and interest rates and an improving U.S. economy. Most regions will participate and contribute to Ontario’s improved economic prospects though differences exist among regions. Resource-based regions will be weighed down by poor metal markets.”

---

Key Facts and Highlights:

• The Hamilton Census Metropolitan Area (CMA) includes the communities of Hamilton, Burlington, and Grimsby, representing approximately 770,000 people.

• The MLS® residential sale price is growing at one of the fastest rates in the province, with projected sale prices increases of 8.3 percent this year, followed by 6.8 percent and 6.4 percent in 2016 and 2017.

• The Bay Area’s population growth rate is predicted to reach its fastest pace in many years at 1.4 percent in 2017.

---

Download the full economic outlook at: http://bit.ly/1OSkjKr

 

– 30 –

 

For more information, contact: Huzaifa Saeed | Policy & Research Analyst | Hamilton Chamber of Commerce | T: 905-522-1151 ext: 230 | e: h.saeed@hamiltonchamber.ca

• Share on Facebook
• Share on Twitter
• Share on LinkedIn