Western Canada helps Canadian economic growth: BMO

Canada’s economy continues to grow at a steady pace, helped substantially by above-average growth in Western Canada’s resource sector, according to BMO Economics’ Provincial Monitor report.

“The resource sector continues to fuel growth in Western Canada, and Alberta is expected to lead the country with 3.5% real GDP growth this year,” said Robert Kavcic, Economist, BMO Capital Markets.

In British Columbia, the housing market has finally shown evidence of a real slowdown, BMO continued, while Central Canada continues to be affected by fiscal restraint, an above-parity loonie, and slow U.S. demand.

The Atlantic provinces are all expected to see growth below 2% this year, although Nova Scotia and Newfoundland & Labrador should bounce back in 2013.

“Several regions of Canada continue to perform well, but businesses across the country need to remain adaptable to change,” said Steve Murphy, Senior Vice President, Commercial Banking, BMO Bank of Montreal. “As the economy recovers, businesses need to make sure they are as productive as possible. With capital and financing costs at historic lows in many cases, now is an excellent time to invest.”

The bank projects national growth of 2.2% in 2012, falling to 2% in 2013. Alberta will lead the country with 3.5% growth this year.