Growing the Economy

Independent economists and think tanks are saying Manitoba is well positioned to weather global economic turbulence:

• According to the Conference Board: “Strong fundamentals will keep Manitoba’s economic outlook buoyant this year. A diversified manufacturing sector, large multi-year capital investment projects, an effervescent housing market, and strong commodity prices will propel real GDP growth to 3.6% in 2008.” (Provincial Outlook, Exec. Summary, pg9, Summer 2008)



• Manitoba real GDP grew by 3.3% in 2007, above the Canadian growth of 2.7%.

Jobs and earnings - Our total job growth increased 1.6% in the last 12 months - 9,400 jobs - this is above the national average of 1.3%. 8,700 of those jobs are full-time, a 1.8% increase, compared to 1% nationally.

• In the first eight months of 2008, employment increased 11,800 relative to 2007. Full-time employment was up 2.9%.



• Average weekly earnings were up 4.2% in 2007, the 3rd highest increase in Canada and above the national increase of 3.2%. This was the strongest increase in nearly 20 years.

Unemployment - In the first eight months of 2008 Manitoba's unemployment rate averaged 4.0%, the second lowest in the country behind Alberta. In the first eight months of 2008, the number of unemployed in Manitoba has declined by 9.4%. This is the largest percentage decline among the provinces.

Youth employment - More youth are working in Manitoba today than at any time during the last decade, reversing a disturbing trend that started in the 1990s. In the first eight months of 2008, the youth unemployment rate was 9.0%, fourth lowest in Canada.

• Fiscal prudence - We have delivered 9 straight balanced budgets under balanced budget legislation. Our government’s fiscal prudence means Manitoba is well positioned:


• Manitoba achieved a surplus of $576 million on a summary basis for 2007-08.



• We increased the Fiscal Stabilization Fund by $155 million to a total of $818 million - that’s three times higher than in 1999/00.



• We reduced the net debt by $277 million in 2007/08 and invested $1 billion in tangible capital assets.



• Since 1999, net debt to GDP, as a percentage, has decreased from 31.5% to 21.3% in 2008.



• Debt servicing costs are down 50% from 1999. They are forecast to equal 6.6¢ of every dollar in revenue in 2007/08 compared to 13.2¢ in 1999/00.

• Investment - Statistics Canada projects that private capital investment in Manitoba is forecast to be up 22.4% in 2008, #1 in Canada, and well over the national average of 3.7%.



• Statistics Canada also projects that total capital investment in Manitoba is forecast to rise 18.8% in 2008, #1 in Canada, and more than 3 times the national average (5.2%).

• Population growth - Manitoba's population has reached an historic high of 1.2 million in 2008.



• Since 1999, 21,975 more people have moved to Manitoba than have left (net). This is a complete turnaround from the 1990s when 16,094 more people left Manitoba than came.



• Since 1999, Manitoba has seen a net gain of 12,537 young people. Over the same period in the 1990s, Manitoba had a net loss of 5,246 young people.

• Housing - In 2007, housing starts in Manitoba increased 14.1% to 5,738 units, the highest level of housing starts since 1987. Housing starts in Canada increased 0.4%. Manitoba’s growth rate was the third highest among the provinces.



• Winnipeg’s home values increased 11.5% over the past year (June 08 over June 07).

• Hydro - Hydro is the largest electricity exporter in Canada. Hydro’s 2008 annual report shows $625M in export sales, second highest in history.



• Construction of the Wuskwatim dam is now under way, in partnership with Nelson House First Nation, and we will be proceeding with the 1,250 MW Conawapa project.



• Major power sales with Xcel Energy of 375 MW, Wisconsin Public Service (WPS) of 500 MW and Minnesota Power of 250MW, announced in the last two years, will provide over $6 billion in new revenue. These sales are a down payment on new generation projects.

Manitoba's Action Strategy for Economic Growth

• Education first - We will continue to make education and training the cornerstone of our economic strategy.



• Building through research and innovation - We will invest today in the jobs and industries of the future.



• Raising and retaining investment - We will work to increase money invested in Manitoba-based businesses.



• Affordable government - We will continue to balance sustainable tax relief, debt reduction, and support for key services in health and education.



• Growing through immigration - We will target the recruitment of 10,000 new immigrants a year.



• Building our energy advantage - We will build new hydro projects and develop alternative energy industries.



• Building our communities - We will invest in key infrastructure in our cities, rural communities and the North.

Figures are current as of September, 2008

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