Media Release
Sudbury’s Economic Outlook Improving after Difficult 2015:Ontario Economic Update 2016
Greater Sudbury, ON, Dec 09, 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 the Greater Sudbury Chamber of Commerce. According to the data, Sudbury’s economic prospects are set to improve after two years of job losses.
The report finds that on the whole, 2015 was a difficult year for the Greater Sudbury area. Employment in the Greater Sudbury CMA is expected to fall slightly in 2015, by 0.2 percent. The unemployment rate is expected to rise to 7.3 percent from 6.4 percent. However, over the next two years, Sudbury can expect roughly 0.5 percent employment growth per year, with government services, retail-wholesale trade, and manufacturing each contributing. The unemployment rate will improve slightly over the next two years as population outflows are offset by a modest rise in the labour force participation rate.
The fortunes of the Greater Sudbury CMA are closely entwined with the outlook for global markets for primary products, including metals. The mining sector has had to adapt to significantly lower metals prices in the aftermath of the 2008 global economic contraction. This year, a downshift in Chinese economic growth has further negatively impacted demand for metals, steel, and other commodities. After rallying earlier in the year, prices for key metals – e.g., gold, nickel, copper, and zinc – have resumed their downward trend, though the weak Canadian dollar has taken out some of the sting.
Encouragingly, the Greater Sudbury CMA’s housing market will show moderate activity in the coming years, with housing prices scheduled to pick up after a slight projected decrease in 2015, while housing sales will continue to grow next year before stabilizing in 2017.
According to the province-wide data, most areas of Ontario will enjoy improving economic conditions in the coming year. Growth will be driven in part by an uptake in exports, the result of a stronger U.S. economy and a low Canadian dollar. Government fiscal policy will also be a key driver, as federal and provincial infrastructure commitments will stimulate growth across a variety of sectors.
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Karen Hourtovenko, Chair of the Board, Greater Sudbury Chamber of Commerce: “Greater Sudbury experienced a difficult year in 2015, but the next two years are projected to be more positive. I am hopeful for the future of Greater Sudbury. Despite being a difficult year we also saw examples of great local success stories. The best way to drive economic growth moving forward will be to make strategic investments in infrastructure, entrepreneurship, innovation and technology.”
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 favourable 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.”
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Key Facts and Highlights:
- Employment in the Greater Sudbury CMA will grow by 0.4 percent in 2016 and 0.5 percent in 2017, after a projected 0.2 percent decline in 2015. The unemployment rate is expected to fall to 6.9 percent by 2017, down from a projected 7.3 percent in 2015.
- Housing sales via the Multiple Listing Service (MLS®) are expected to have shown strong growth by the end of 2015, rising by 6.7 percent after declining by 6.6 percent in 2014. MLS® housing prices in 2015 are expected to decline by 3.0 percent after 5 years of consecutive housing price increases.
- The population of the Greater Sudbury CMA has remained largely static for the past 5 years, and is expected to grow very slightly (0.1 percent per year) over 2016 and 2017.
Download the full economic outlook here.
For more information, please contact:
Joyce Mankarios
Policy and Public Relations Manager
Greater Sudbury Chamber of Commerce
705-673-7133 ext. 224
joyce(at)sudburychamber.ca
The Greater Sudbury Chamber of Commerce is a non-profit organization that represents 1,000 businesses and through the participation of its member volunteers on committees and task forces, it works ‘as the Voice of Business’ to influence federal, provincial and local legislation affecting business.