This year we decided to add economic coverage of Canada to our annual forecast report, providing you a better overview of the North American market.
Economically, Canada Real GDP is expected to rise by 1.9% in 2018, according to the International Monetary Fund (IMF), with Alberta, British Columbia, and Ontario being the best performing provinces. Unemployment is projected to continue to decrease to 6.8% in 2018, while inflation (CPI) is expected to stay at 2.1%.
Overall, the biggest threat to the Canadian economy is the continued uncertainty around the trading relationship with the United States and any potential changes to NAFTA.
Forecast by Segment
For the overall construction sector, we believe Canada will grow 4% in 2018. Non-building construction, which includes infrastructure, public works, and transportation, will be the best performing sector in 2018, with 7% projected growth. After a decline in 2017, there is an effort for added projects in the space fueled by improving commodity prices and government incentives.
Non-residential will also see positive growth as Canada transitions to a more high-tech, service-based economy. We project 6% growth in 2018 with office construction and manufacturing likely leading this segment.
Residential is expected to show stable growth at 2% in 2018 supported by continued population increases, which in the past 10 years, has grown more than the U.S. (1.1% increase per year versus 0.8% increase per year for the U.S. population).
To see more details about what we are forecasting for all of North America, download the full 2018 report.
