“Belt-tightening” by the federal government is holding back economic growth in the Ottawa-Gatineau region, according to a new report released by the Conference Board of Canada on Friday.
The organization’s Metropolitan Outlook for fall 2013 found the region’s economy is expected to expand by 0.8 per cent this year – the second lowest figure among the major cities examined for the report.
A big factor in that slow growth-rate is the drop in public-sector employment.
“Public administration employment is headed for its biggest decline on record, tumbling by 7.5 per cent this year,” according to a Conference Board press release.
But the report suggests that the situation will improve in the near future. It predicts that both Ottawa’s GDP and rate of job growth will increase to 1.6 per cent in the next year.
According to the Conference Board, western cities are seeing the highest rate of economic growth, occupying the top five spots on the list of 13 metropolitan areas.
Saskatoon and Regina took first and second place, with the economies in both cities expected to grow around five per cent.
Victoria was ranked last, with flat economic growth expected.