Publication Details

East Durham on the Brink of Economic Success

On the brink of economic success

Oshawa to reach 3.9 per cent growth in 2008

By Izabela Jaroszynski

DURHAM -- Despite a recent economic slowdown, the Oshawa Census Metropolitan Area is poised to become one of the fastest-growing metropolitan economies in the country.

A quarterly study released by the Conference Board of Canada shows that the Oshawa CMA -- which includes the city of Oshawa, the town of Whitby and the municipality of Clarington -- was only one of two Ontario areas to rank in the top half of all Canadian CMAs for economic growth. The Toronto CMA, which includes Ajax, Pickering and Uxbridge, was the other.

“Like many other cities in Ontario, Oshawa has struggled a bit because of the downturn of the manufacturing sector,” said Alan Arcand, a senior economist with the board and author of the report. “But Oshawa benefits from something that other cities don’t and that’s very strong population growth thanks to strong in-migration from other parts of the province, especially the Greater Toronto Area.”

According to the 2006 Census, the CMA grew by 11.6 per cent between 2001 and 2006. It is this rapid influx of new residents that Mr. Arcand says is fueling the area’s economic success.

“Home buyers flock to Oshawa to take advantage of cheaper home prices,” he said. “That in turn fuels healthy domestic demand as people obviously live in the city, they spend money in the city, shop in the city.”

In 2007, Oshawa is expected to post 2.7 per cent in real GDP growth, well above the provincial average which sits at 1.9 per cent. Between 2008 and 2011, that number will increase to 3.9 per cent, giving Oshawa the second highest ranking in the country.

The report points to the $740 million investment by General Motors as a sign that the manufacturing industry can look forward to stronger growth going forward. Manufacturing output is forecast to increase by 4.2 per cent per year from 2008 to 2011. The stronger growth will allow employment to climb in the industry from 2008 outward, the report said.

“Normally, Oshawa’s economy is growing very strongly,” Mr. Arcand said. “The last couple of years have been weak, but that’s more of a blimp, an exception instead of the rule.”

Back