THUNDER BAY — A local economist saw some positive things for Thunder Bay’s economy in 2024.
Livio Di Matteo, an economics professor at Lakehead University, said Thunder Bay had a particularly good year, citing that the population is growing, construction is up, and the port is doing the best it has in years.
“The really big driver in Thunder Bay this past year would have to be the construction sector, given the continuing construction of the new billion-dollar provincial correctional facility as well as substantial rental accommodation construction,” said Di Matteo.
“There are many workers who are commuting to Thunder Bay for the construction work or commuting through Thunder Bay to work at the mines, and this has helped buoy demand for accommodation and services this year.”
He added that although the trend should continue through 2025, given the massive scale of the (jail) project, “the real concern” is moving into 2026 and 2027 when the provincial correctional facility construction winds up.
“By this time, the full impact of changes to international student visas will also have emerged, which will affect the local post-secondary sector as well as local retailers that rely on international student labour,” he said. “Should the currently lagging lithium and critical mineral projects finally emerge by this period, then they will likely help take up the economic slack.”
Di Matteo looked south of the border at the potential impact of president-elect Donald Trump, who takes over on Jan. 20. He said the impact of potential tariffs is unclear. Tariffs applied to natural resource products would be of concern in Northwestern Ontario.
The actions taken during Trump’s first presidency, from 2016 to 2021, provide some insight.
“The incoming U.S. president is more of a known quantity this time around and the evidence is that he is quite transactional with much of his behaviour designed to stake out bargaining positions,” Di Matteo said. “Canadians should be prepared to wheel and deal.”
