Economic Outlook Good For Region
A former University of Windsor economist says this region will benefit if the latest forecast from RBC is on target.
The Royal Bank is predicting the economy will grow 2.5% this year and 2.7% next year. As for the loonie, RBC expects the dollar to trade around $0.87 U.S. by the end of this year, and dip to $0.85 U.S. by the end of next year.
Mark Meldrum says that’s music to the ears of manufacturers in the greater Windsor-Essex region. “You stop the people going across to the U.S. to spend their money and they stay here,” says Meldrum. “You also drag the people from the U.S. over here to start spending their money. There are lots of people who live in Windsor who work in the U.S., they just got a raise. I don’t know that Windsor would have a net negative out of this.”
Meldrum adds that most of the companies in the region are getting American income, especially the tool and mold shops, and paying Canadian wages. As for interest rates, Meldrum doesn’t expect to see them change for at least another two years. He says the forecasted economic growth isn’t enough to make the rates go up.