Toronto and Hamilton will have the two slowest growing conomies in 2008 among the 13 large Canadian census metropolitan areas (CMAs), according to an outlook released today the Conference Board of Canada.

“Mainly because of the woes in their respective manufacturing sectors, both Toronto and Hamilton are on pace to record their weakest economic growth rates since the early 1990s,” says Mario Lefebvre, director, Centre for Metropolitan Studies. “And given recent layoffs and plant closures, the growth rate in the two CMAs could be even more tepid by the end of the year.”

Toronto’s manufacturing output is expected to fall for the fourth consecutive year. On the bright side of the CMA’s outlook, both residential and non-residential construction have been driving growth and the services sector continues to benefit from increasing personal disposable income. Real gross domestic product in Toronto is forecast to grow by 1.3% in 2008.

With its key manufacturing sector in a slump, Hamilton’s economy is forecast to grow by just 0.3% in 2008. Most sectors of the economy are struggling, but numerous non-residential construction projects will help provide some support to the economy.

Western Canadian CMAs are forecast to occupy the top seven positions in the GDP growth ranking for 2008. Saskatoon and Regina rank first and second with real GDP growth rates of 5.2% and 4.1%, respectively.