Reduced government spending will cause real GDP growth in Ottawa-Gatineau to slow to one per cent this year, down from 1.5 per cent in 2011.
“Ongoing fiscal restraint by the federal government will keep growth at bay not only this year, but over the next few years as well,” a summary of the report read.
“By the time the federal government’s belt-tightening exercise comes to an end, the public administration’s share of the Ottawa-Gatineau economy will have edged down from 26 per cent in 2011 to 24 per cent in 2016.”
Real GDP growth in Ottawa-Gatineau is forecast to rebound to 1.9 per cent between 2013 and 2016. However, that still places the region last among the 13 metropolitan areas surveyed.
Edmonton is forecast to lead the country in 2012, with an increase of 4.6 per cent.