(November 23 – 10:10 ET) – A report by Bank of Montreal economists says economic growth in Canada’s Technology Triangle — the Ontario cities of Kitchener, Waterloo, Cambridge, Guelph and surrounding areas — will surpass that of Ontario as a whole during the next couple of years.

BMO projects that the region’s economy will grow at an average annual rate of 4.5% during the next two years, a full percentage point faster than the Ontario average.

“The growth will outpace Ontario, and that’s no mean feat, considering that the province has had, and will continue to have, one of the fastest growing economies in Canada,” said Rick Egelton, deputy chief economist at BMO.

The bank found that the region has benefited from entrepreneurship and excellent synergies between the private sector, academia and governments. The study reviews the region’s demographics, employment growth, housing markets, commercial/industrial construction, manufacturing, and the services sector. It shows that the region’s economy outperformed on all fronts during the past three years, generating powerful economic growth.

The drivers of growth in the region remain firmly in place says Egleton, establishing a solid base for sustained strong expansion in the region during the next two years. BMO identifies robust growth in manufacturing as a key factor, including auto parts, motor vehicle assembly, machinery, electrical and electronic equipment, tool and die, plastics, and many others. Advanced manufacturing for the information-communications sector and biotechnology is also well represented in the region.

Population growth in CTT is well above the national average due to the immigration of skilled labour from within Canada and other countries. “That’s due to excellent education facilities, employment opportunities, residential facilities, and easy access to other major metropolitan centres in Canada and in the United States.”

“Looking ahead, economic prospects for the region are very favourable,” noted Egelton. “This reflects our view that North American economic growth, while moderating from its booming pace of the past couple of years, will remain reasonable. It also reflects very positive fundamentals specific to this area.”