The Conference Board of Canada is forecasting that Windsor’s economy will expand by 2.2 per cent in 2025, but the impact of the trade war launched by U.S. President Donald Trump remains a huge question mark.
The Conference Board of Canada’s outlook for the region predicts most of the growth will happen in the second half of this year, with the baseline forecast factoring in uncertainty around tariff threats, including a weaker outlook for business investment and a lower Canadian dollar.
Statistics Canada reported the local jobless rate improved to 9.3 per cent in March, still the highest in Canada, but the Conference Board forecasts that the unemployment rate will rise to an average of 8.4 per cent this year.
Conference Board of Canada Economist David Ristovski told AM800’s The Shift, that their outlook is largely driven by the opening of the electric vehicle battery plant, and once production is in full swing, Windsor will become a global leader in electric vehicle and parts manufacturing.
“However there are downside risks, which include the escalation of the trade situation with the United States and overall uncertainty around how well the electric vehicle battery market will develop and perform in Canada over the next couple of years,” he said.
The conference board is not sure how well the electric vehicle battery market will develop over the next few years as companies such as Northvolt (Quebec) and Ford (Ontario) are delaying production of EV batteries.
Ristovski says a $200-million commercial development in LaSalle will help ease some of the construction job losses, as work on the Gordie Howe International Bridge comes to an end this year.
“Overall, the project is expected to create around 400 permanent jobs once completed, providing a boost to the retail trade, accommodations, and food services sectors in the coming years,” he added.
Multi-million-dollar construction projects such as the interchange at Banwell Road and the E.C. Row Expressway are also expected to continue boosting the area’s construction sector over the next couple of years.
Ristovski said that interest rates are also on their way down, and they expect spending on big-ticket items should ramp up once interest rates are down to a more neutral territory.
— Rusty Thomson/AM800 News
