Cautious optimism: sluggish growth forecasted for northern economy.

By Northern Ontario Business staff

Growth--however small and slow_ is being forecasted for the Northern Ontario economy over the next two years.

Statistics on the region's economic health were released in a report entitled Regional Economic Outlook--Northeast, released by the Credit Unions of Ontario and the Ontario Chamber of Commerce in January.

"Economic growth will remain sluggish over the next two years, with the mining sector seeing spotty improvement," states the report. "The labour market and consumer spending growth looks weak with government investment, spending and regional population growth stalled through 2015."

Following job losses in 2012 and 2013. there is a projected increase of 3,500 jobs over the next two years, dropping the unemployment rate from a high of 7.8 per cent in 2011 to 6.6 per cent in 2015.

Housing sales will go up and so will prices; the average cost of a home in Northern Ontario will rise from $214,500 in 2013 to $232,350 by 2015.

Except for a slight dip in 2014, building permits are expected to remain around 2013 levels, for both the public and private sector, at an average worth of $450 million.

Resource industries, retail-wholesale trade, and health and social services are credited to the forecast growth, while construction contributes only marginally.

Phil Barton, president of the Timmins Chamber of Commerce. viewed the report as delivering good news. "

Although there continue to be some challenges, including outmigration and tightened government spending, there are some cautiously positive economic signs on the horizon," Barton said in a release.

Major projects expected to contribute to investment spending and employment include the Ontario Power Generation's $2.5-billion investment in hydroelectric infrastructure in the Lower Mattagami River north...