Abbotford’s economy slowed through 2012 and will continue to be sluggish throughout 2013, but a resurgent manufacturing sector will drive growth in the region, the Conference Board of Canada reported in its summer Metropolitan Outlook.
The report examined the economies of several small cities in Canada, including the Abbotsford-Mission region.
An expected slowdown in construction activity will impact the region’s economy, as well as tepid growth in the services sector. The conference board notes that lower activity in the public sector have impacted the overall services industry, resulting in tepid growth of 1.7% in services output compared with 1.9% in 2011.
Abbotsford’s manufacturing sector was hit hard by the recession and saw a loss of 1,300 jobs during that period. But between 2010 and 2012, the sector saw average growth of 4.3%. While job growth took some time to catch up, in 2012 manufacturing jobs in the region grew by 40.8%.
The conference board expects strong growth to continue for Abbotsford throughout 2013, and then level off after that. The improving U.S. housing market will boost business for the region’s wood product manufacturers, it said. However, the board predicts a strong Canadian dollar will put the brakes on some of the growth.
The conference board also expects employment in manufacturing to slow this year after the rapid gains of 2012. The board forecasts employment in manufacturing to fall by 15.1%.
