Toronto’s economy will accelerate slightly in 2007, but it will be 2008 before it resumes its place as one of the fastest growing economies in Canada, according to the latest Metropolitan Outlook from the Conference Board of Canada.

“After a disappointing 2006, Toronto will see modest gains in 2007, but will still be well behind the national leaders from the west in Calgary, Edmonton and Vancouver,” said Mario Lefebvre, director, Metropolitan Outlook Service. “Fortunately, better results are in the cards beginning in 2008.”

The impact of the strong Canadian dollar on industries sensitive to foreign trade, especially manufacturing and tourism, has dampened overall economic growth in the Toronto census metropolitan area (CMA) since 2003. That continued last year, when manufacturing output shrank and the overall economy grew by just 2.3%. In 2007, the manufacturing sector is expected to improve modestly, helping real gross domestic product to grow by 2.9%.

By 2008, manufacturing output growth will be sufficient to lead to positive job creation in the industry. This, combined with continued strong non-residential construction, will support economic growth of 4%. Between 2008 and 2011, Toronto’s annual growth will average 4.1%, tops among all 20 CMAs covered in this edition of the Metropolitan Outlook.