Moncton’s economy is ‘very hot right now’

A new report from the Conference Board of Canada is forecasting modest economic growth over the next few years for the City of Moncton.

The report predicts the city’s economy will grow by 1.7 per cent this year and 0.6 per cent in 2024. 

Kevin Silliker, the director of economic development for the City of Moncton, said the Conference Board of Canada is one of the country’s most reliable third-party sources the city has available.

“It really highlights the performance of the economy in recent months and recent years, but also provides an outlook for 2024 through to 2027 on what the economy of Moncton may look like in the years to come,” said Silliker.

Moncton's gross domestic product grew by 3.5 per cent last year and the city's population expanded by just over six percent. 

The report states the population will rise again in 2023 by 3.4 per cent.

Silliker said the city is trending upward from a GDP, employment and construction growth perspective.

“The economy is very hot right now and the report details that with regard to investment in the area,” he said.

The main reason is the combination of the housing market and the influx of newcomers.

“They're kind of inter-related. The construction and the population growth are very closely connected. That population growth that is coming in is really driving demand for housing, driving demand for residential obviously, but also other services and amenities in the area which the construction industry responds to,” said Silliker.

In order to keep the momentum going, Silliker says the city is investing in downtown infrastructure and is helping to build more residential units.

Other key factors in the Conference Board of Canada’s report include:

• Having passed its peak, inflation is on track to ease by two per cent by 2025.
• The wage growth was 5.4 per cent in 2022 and the strengthening labour market will continue on par through 2023.
• Moncton is forecast to gain around 1,360 jobs in 2023, an increase of 1.6 per cent from last year.
• Higher mortgage rates will cause housing starts to drop significantly as higher mortgage rates inhibit the demand for housing.
• The hospitality industry lost 1,230 jobs in 2021, but post-pandemic the sector gained 350 positions in 2022.

In April, Silliker told CTV News around 8,800 people moved to the region in 2022, but he isn't sure that's sustainable over the long haul, so a slowing down period will probably be beneficial. 

“That population growth, really there needs to be a balance there,” said Silliker. “We’re pleased to see that growth, but at the same time maybe having it spread out over a couple of years would be beneficial.”

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