For the second consecutive year, Calgary, Edmonton and Saskatoon will lead Canadian cities in economic growth in 2006, according to the Conference Board’s Metropolitan Outlook.

“Strong energy sector activity is the starting point for healthy gains in most industries in Calgary and Edmonton,” said Mario Lefebvre, Director, Metropolitan Outlook Service, in a news release. “Vigorous activity in the minerals sector will allow the Saskatoon economy to post its third consecutive year of rapid growth.”

“Vancouver and Victoria are also near the top of the rankings, implying that western Canada will boast five of the six strongest economic performances this year among metropolitan economies. Eastern Canadian cities will have to wait until 2007 to move closer to the top of the growth rankings.”

Calgary’s economy, which grew by 5.7% last year, is expected to expand by a stunning 6.6% in 2006. Edmonton’s real gross domestic product (GDP) increased by 5.3% last year and is forecast to grow by 5.9% in 2006. Saskatoon’s growth, while falling off slightly in 2006, is still expected to come in at a healthy 3.8%.

Quebec City will post its second consecutive year of strong growth in 2006, at 3.7%. A number of major non-residential construction projects will lift growth in the goods-producing sector, while sound job creation will provide a boost to consumer spending.

Vancouver’s construction sector -on both the residential and non-residential front- will combine with solid consumer spending to generate real GDP growth of 3.5% in 2006.

Victoria is also enjoying strong construction activity and employment growth, allowing the economy in the Census Metropolitan Area (CMA) to expand by 3.3% this year.

The construction industry will also be an important contributor to economic growth in Winnipeg in 2006, where real GDP growth is forecast to reach 3.1%.

Regina will see its real GDP growth slow from 3.1% in 2005 to 2.3% in 2006. While the manufacturing and construction sectors continue to hold their own, weak consumer spending is slowing activity in the services sector.

Manufacturing sectors in most Ontario cities are still dealing with the effects of a strong Canadian dollar.

At 3.2%, Kitchener is anticipated to post the fastest growing economy this year.

Oshawa, Toronto and Ottawa-Gatineau are each expected to grow by 3% this year, while Windsor, Kingston and Hamilton are forecast to grow by 2.1%.

Halifax and St. John’s will pace CMAs in Atlantic Canada this year, posting growth of 3.2% and 3.1%, respectively.

The Saint John economy will continue to struggle this year, with growth expected to come in at a modest 1.8%, on the heels of zero growth in 2005.

Montreal’s economy is still sluggish. Following an average annual increase of 2% per year from 2001 to 2005 inclusively, real GDP growth in the CMA is forecast to come in at 1.9% in 2006.

The Metropolitan Outlook, published quarterly, includes economic outlooks for 27 Canadian CMAs, their province and Canada.