Windsor's economy is not expected to grow as much over the next while, but the Conference Board of Canada says that is typical for most mid-sized cities.
Fueled by construction on the Rt. Honourable Herb Gray Pkwy., a boom in the housing market, strong U.S. vehicle sales, and investments made at the Windsor Assembly Plant, Windsor's economy grew 3% a year between 2014 and 2017.
Last year's report also predicted a slowdown for the local economy.
Going forward the report, which looks at 16 cities across the country, predicts the local economy will only grow 2% for the rest of 2018, and 1.7% in 2019.
The associate director in the board's centre for municipal studies, Alan Arcand, says 2% growth is more sustainable for Windsor and points out some factors for the slowdown.
"U.S. vehicles sales fell for the first time in a number of years in 2017. Those appear to have peaked," he explains. "Interest rates are starting to come back up, and there's also tougher mortgage rules. Those two things are impacting the housing market."
As for what it will mean for the job market, the report predicts the unemployment rate will hover above 6% in the second half of this year and next.
"In the whole scheme of things it's still going to remain fairly low, and that really has to do with the fact that baby boomers are retiring," he says. "That's going to really put downward pressure on the unemployment rate. For job seekers, it tends to continue to be a good story for them."
The economy is expected to pick up again in the second half of 2019 after a full year of construction on Gordie Howe International Bridge. Also on the horizon, building the new acute care hospital in Windsor.
The report assumes Canada will be able to reach a new North American Free Trade Agreement with the U.S. and Mexico, and the U.S. will not impose tariffs on automobiles made here. If that is not the case, Arcand admits the outlook will change.
