Pandemic reshapes economic picture for Canadian cities

Halifax is forecast to have a middle-of-the-road recovery from the economic doldrums associated with COVID-19, according to a report by the Conference Board of Canada released Tuesday.

The report makes forecasts for 13 Canadian cities from 2020 through 2024, with Halifax expected to do better than six but not as well as six others.

The Conference Board forecasts Halifax's real GDP growth to shrink by 3.4 per cent in 2020, then grow by an average three per cent a year in 2021-24.

The report says travel restrictions and social distancing measures are having an impact in all major cities, but there are regional differences in the economic outlooks based on local sectors and pre-pandemic conditions.

While all cities will be affected, there are regional differences in the economic outlooks based on local sectors and pre-pandemic conditions.

“The COVID-19 pandemic has taken a drastic toll on the Canadian economy, and no region of the country will escape its negative impacts,” Todd Crawford, the board's associate director for economic forecasting, said in a release.

“All major metropolitan economies are forecast to contract in 2020. However, assuming the virus's spread is contained and firms can return to normal operations over the summer months, a recovery should begin in the second half of the year leading to sharp rebounds coast to coast in 2021.”

Job losses are affecting income and consumer confidence, reducing spending on accommodations, retail and restaurants in every location.

Cities with higher publicsector employment are predicted to fare slightly better than others.