The slowdown in the economy was reportedly driven by inflation and high interest rates which have impacted consumer demand and discretionary spending. Photo Credit: Getty Images.
The Conference Board of Canada, one of Canada’s leading research organizations, released a new report on their major insights into Hamilton’s economy for the upcoming year and beyond.
The group notes that the first Bank of Canada interest rate cut is not expected until later in the year, meaning that high interest rates will persist for the time being, significantly impacting the local economy.
Hamilton’s economy reportedly slowed about midway through 2023 and real output growth is estimated to have only reached 0.8 per cent, which came in below the provincial average of 1.1 per cent.
Their outlook for 2024 is that the economy will “remain sluggish” before picking up as the year continues.
The slowdown in the economy was reportedly driven by inflation and high interest rates which have impacted consumer demand and discretionary spending.
However, the report says that Hamilton will see a recovery in 2025, with real output rising 2.8 per cent.
The report also notes that a number of sectors in Hamilton will see increases in output growth including the high contact service centre, the arts and entertainment industry, the manufacturing sector, and the healthcare sector.
In terms of construction and real estate, the report says that the city has seen “impressive population growth” of 1.5 per cent, due mainly to international migration which is fueling housing demand.
The report notes that “a record of nearly 11,000 net international migrants came to Hamilton” in 2022.
But as a result of high interest rates, which impacted housing affordability, demand for housing dropped and housing starts were lowered in 2023.
As rates begin to lower, it is expected that housing demand will increase and housing starts will pick up, benefitting the construction industry.
With the City of Hamilton’s population set to rise to 820,000 by 2051 there are also a number of ongoing housing developments and business investments that will have a positive impact on the construction industry.
The report notes that there are multiple major housing projects ongoing in the city including the Beasley Park Lofts, Cobalt Luxury Residences, and the Muse Condos.
In terms of business investments, a new Atlantic Packaging warehouse, OmniaBio’s new gene therapy manufacturing facility at McMaster Innovation Park, and the massive redevelopment of a swath of Stelco lands on the Hamilton waterfront are all planned.
Construction on the city’s new light rail transit line is also expected to begin within the next year or two, which is yet another major project that will sustain multiple jobs.
Based in Hamilton, he reaches hundreds of thousands of people monthly on Facebook, Instagram, TikTok, and Twitter. He has been published in The Hamilton Spectator, Stoney Creek News, and Bay Observer. He has also been a segment host with Cable 14 Hamilton. In 2017, he received the Chancellor Full Tuition Scholarship from the University of Ottawa (BA, 2022). He has also received the Governor General’s Academic Medal. He formerly worked in a non-partisan role on Parliament Hill in Ottawa.
