Waterloo Region's economy is poised for a big rebound this year, says the Conference Board of Canada.

The local economy is expected to grow 3.3 per cent this year after and an average of 4.2 per cent from 2011 to 2014, the board said today in its Metropolitan Outlook report.

"This is forecast to ultimately fuel stronger hikes in employment, population and housing starts, particularly starting in 2011," the board said in the report.

Unemployment, which averaged 9.4 per cent in 2009, the highest on record, will slowly ease as employment grows, falling to 6.9 per cent in 2012 and 5.8 per cent in 2013, the board said.

The strong growth comes after a year in which the area's GDP (gross domestic product) plunged 3.4 per cent, the board said.

It also will give the region the third strongest economic growth among the 27 urban centres featured in the report. For the coming year, it will be topped only by Vancouver, at 4.5 per cent, and Toronto, at 3.5 per cent.

The local forecast is for the Kitchener census metropolitan area, which includes all of Waterloo Region except for Wellesley and Wilmot townships.

The region's hard hit manufacturing sector will play a big role in the recovery, the board said. Manufacturing output declined by an estimated 13.6 per cent in 2009, but the sector is stabilizing and showing signs of revival, it said.

Companies such as Toyota, Com Dev International, Innovative Steam Technologies and Heroux-Devtek are expanding production, helping power the manufacturing sector to forecasted growth of 3.2 per cent this year and an average of 6.2 per cent from 2011 to 2014.

Janaury 27th, 2010

SOURCE: The Record