Tourism Winnipeg

Winnipeg Economic Highlights Winnipeg's overall economic performance in 2012 can be characterized as stable with moderate growth. The Conference Board of Canada in its Spring 2013 Metropolitan Outlook for 2012 estimates 1.6% of real GDP growth in Winnipeg. This follows a slow year of economic growth in 2011. In 2012, Winnipeg performed similar to the national average (1.9%). Winnipeg's improvement in 2012 is attributed to the healthy expansion of the goods sector (3.7%) and services sector (1.2%). Other sectors (information, business and cultural) posted positive growth rates but were below 1.0%. The forecasted growth initially reported in 2012 was 2.0% but with government restraint, and the contraction of both defence and public administration sectors by 1.1%, Winnipeg was not able to reach the projected 2.0%. For 2013, growth is forecasted to be widespread although moderate. The Conference Board is forecasting Winnipeg will achieve real GDP growth of 2.3% in 2013. This is attributed to the business services sector, wholesale and retail trade sector gains, along with the recovery of the local manufacturing sector. After three years of declines, the manufacturing sector increased 1.6% in 2012 and is forecasted to increase 2.2% in 2013. Goods sector in 2013 will increase at a slower pace compared to 2012 and the services sector growth will improve at a stronger pace. Construction activity was high in 2012 due to nonresidential multiyear projects that were coming to an end– Chief Peguis Trail, CentrePort Canada, the Disraeli Bridge, and IKEA, as well as work on the Investors Group Field. The construction activity increase in 2012 was also heavily supported by 4,100 residential projects in Winnipeg, reaching its highest level since 1987. In a year-over-year comparison, Winnipeg's job growth improved by 9,000 jobs or 2.1% in 2012—resulting in stronger job growth than the national rate of The Winnipeg Barometer Report | Volume 4, 2013 1.2%. With an unemployment rate of 5.6% in 2012, Winnipeg continues to experience one of the lowest unemployment rates in the country. For 2013, the Conference Board projects employment growth in Winnipeg of 0.9% and the unemployment rate to remain similar to 2012 at 5.5%. Confidence in the local economy is reflected in the rise of building permit values and average home prices. In 2012, Winnipeg's overall building permit values rose 45.3% from the same period in 2011. Non-residential construction was one of the strongest markets with building permit values up 77.8%, while residential building permits grew 27.2% thanks to continued growth in housing starts. The average selling price for a home in Winnipeg rose 5.0% to $246,318, a modest increase of 2.6% to $252,600 is forecasted for 2013 as reported by the Canadian Real Estate Association. Industrial building permits values also advanced more than 100% compared to 2011 permit values. Housing starts have seen a decline thus far in 2013, which may be partly attributed to tighter mortgage rules. The Conference Board of Canada estimates housing starts year-to-date in 2013 have decreased 11.8%. The Conference Board estimates 2012 retail sales grew approximately 1.3% in Winnipeg. The city's retail scene continues to improve due to new investments in retail development, including the newly opened $190 million IKEA project, the Seasons of Tuxedo retail development and current renovations to St. Vital Centre valued at $10 million. Retail sales in 2013 are expected to increase 3.6%. Winnipeg's inflation rate in 2012 stood at 1.6%, below the national rate of 1.9%. For 2013, the Conference Board of Canada forecasts Winnipeg's inflation to post at 2.0%, on par with the national rate (1.6%). 5

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