With their economies growing by 7% each, Saskatoon, Sask. and Kitchener, Ont. will lead all 20 Canadian cities covered in the Conference Board’s Metropolitan Outlook – Autumn 2005.

“Saskatoon’s economy is firing on all cylinders, continuing a decade-long spurt in economic growth during which real gross domestic product increased by an average of 3.7% annually,” said Mario Lefebvre, Director, Metropolitan Outlook Service, in a release. “Kitchener’s economic growth, its strongest in six years, will be led by an outstanding year in the construction sector.”

Kingston, Ont. will post real GDP growth of 5.5% in 2005, thanks to a rebound in its service sector.

Buoyed by high energy prices, Calgary’s construction and services sectors are driving real GDP growth to 4.6% in 2005.

Rising employment levels will be a boon for consumer spending in Quebec City, which will translate into real GDP growth of four% this year.

Following two years of relatively weak economic activity, Saint John, N.B. will rebound in 2005. Real GDP growth is set to reach 3.8%. Strong job creation will lift personal income growth, allowing for a recovery in the services sector.

The economy of Oshawa, Ont. is expected to expand by 3.4% in 2005, as both the services and manufacturing sectors are rebounding from a rare down year in 2004. Moreover, Oshawa is expected to be the fastest growing census metropolitan area between 2006 and 2009.

Strong commodity prices are stimulating both primary and manufacturing output in Vancouver, lifting real GDP growth to 3.3% in 2005.

The services sector will bolster Winnipeg’s economy in 2005, as stronger personal income and population growth propel consumer spending. Real GDP growth is forecast to come in at 2.7% this year.

Following a strong 6.1% gain last year, Victoria’s economy is expected to moderate to a still respectable 2.6% in 2005. Vigourous employment growth of 4.5% will sustain consumer spending in the CMA.

Despite strong energy prices and sound growth in manufacturing output, total employment in Edmonton declined in the first half of 2005, hampering the services sector. Edmonton’s economy is anticipated to grow by 2% in 2005 before posting a much better result in 2006.

Regina had one of the fastest growing economies in Canada last year, but a large decline in housing starts in 2005 is offsetting continued gains in consumer spending and in oil and gas development. Real GDP growth will come in at 2%.

With economic growth of 2.2% this year, Toronto’s economy will underperform for the second time in three years, relative to its own recent history. The strong dollar and several plant closings are weighing down the city’s manufacturing sector, but Toronto is expected to rally next year to post growth of 3.8%.

Montreal’s economy is expected to expand by 1.8%, making it the third consecutive year in which real GDP growth comes in below 2%.

The end of the federal government’s hiring spree and a second consecutive year of declining construction activity is limiting Ottawa-Gatineau’s real GDP growth to just 1.5% this year.

Manufacturers in Widsor, Ont. are holding their own against a higher dollar. But both the services and construction sectors are expected to weaken, restraining growth to 1.1% in 2005.

The manufacturing sector in Hamilton, Ont. is cooling off in 2005 after two strong years. Moreover, construction output is forecast to decline for a second consecutive year. Overall, real GDP growth of 1.1% is expected.

A struggling goods sector will limit economic growth in Halifax to 1.1% in 2005.

St. John’s economy will post growth of only 0.5% in 2005. With the White Rose project expected to reach its near-capacity level toward the end of 2006, increasing oil production will contribute to a stronger performance for the CMA next year.

General weakness in local goods-producing industries is having a detrimental effect on total employment and the services sector in Saguenay, Que. Real GDP is set to decline by 6% in 2005.