Calgary’s economy is forecast to be the strongest among Canada’s cities in 2004, while Toronto will set the pace for growth over the medium term, according to The Conference Board of Canada’s Metropolitan Outlook Spring 2004.

“Calgary and Toronto are tops in economic growth in 2004 and through to 2008,” said Mario Lefebvre, director, metropolitan outlook service, in a news release. “Following last year’s losses in tourism and transportation, Toronto’s services sector will rebound this year, lifting overall economic growth. Real gross domestic product (GDP) growth will be even stronger in 2005, boosted by a strong pick up in manufacturing activity.”

Toronto posted growth of only 0.1% in 2003, but was already getting back on track by the fourth quarter. The economy is expected to expand by 4% in 2004, thanks largely to the transportation and tourism sectors. The Toronto economy is forecast to post a gain of 4.6% in 2005, as a stronger U.S. economy and a weaker Canadian dollar will boost manufacturing output. Toronto’s real GDP is forecast to expand by an average of 3.8% per year in the medium term.

After posting real GDP growth of 3% last year, Calgary’s economy is forecast to grow by 4.6% in 2004, and by an average of 3.6% per year, from 2005 to 2008.

“Energy sector investment and strong population growth are fuelling economic activity in Calgary,” said Lefebvre. “Employment prospects, as a result, remain sound. Despite a weakening housing sector, strong non-residential construction output will support growth in the overall construction sector.”

Among the 18 cities covered in this edition of the outlook, western Canada boasts five of the six fastest growing economies—Calgary, Regina, Winnipeg, Edmonton and Vancouver.