B.C. economy to grow in face of global turmoil

Credit Union sees three per cent growth for province, while poll finds pessimistic residents hunkering down

Growth in the B.C. economy is forecast at at least three per cent in 2016 and beyond despite a downturn in global markets that has fueled consumer pessimism.

B.C.’s economy is forecast to grow at a healthy clip of three per cent this year despite growing global financial uncertainty that has seen stock markets plunge and the Canadian dollar swoon in tandem with the dive in oil prices.

That prediction comes from Central 1 Credit Union senior economist Bryan Yu, who says the province will lead Canada in growth and should weather the global economic turmoil well, thanks to improved exports and tourism due to the weak loonie.

“B.C. will continue to benefit from low interest rates and a lower currency, despite challenges presented by a weak commodity sector,” Yu said. “Lifted by household demand and housing investment, economic growth will ease slightly from 2015 but remain moderate.”

Yu also expects economic growth to average three per cent from 2017 on, with steady consumer activity and higher business investment tied to major project construction.

His forecast assumes one large liquefied natural gas terminal will be built in B.C. and Yu cautioned growth would be slower at about 2.5 per cent and unemployment higher by 0.5 per cent if a new LNG plant fails to materialize.

He predicts unemployment will edge up slightly in 2016 to 6.3 per cent before declining in subsequent years.

The forecast is in contrast to a new Insights West poll that shows B.C. residents have become considerably more pessimistic about the economy and many are adopting a frugal mindset as they hunker down for financial trouble.

Two-in-five of those surveyed expect B.C.’s economy to decline and at least 40 per cent said they plan to slash spending on entertainment, new clothes or dining out to prepare for tougher times.

The poll found 93 per cent expect to pay more for groceries over the next six months and 71 per cent expect higher real estate prices.

Nearly half of respondents said they’ve worried frequently or occasionally about the value of their investments.

Just Posted

Company granted leave to appeal Lemon Creek charges

Executive Flight Centre won a decision in the BC Court of Appeal

Interior Health study offers take-home drug testing kits to spot fentanyl

Interior Health to evaluate safety of at home drug testing kits aimed at reducing fentanyl overdoses

Nakusp students get CPR, defibrillator training

Advanced Coronary Training program visits high school

Cannabis promoters call for ‘reset’ of federal pot rules

Changes in regulation are causing chaos for small growers, say letter’s authors

Trail firefighters quash a string of suspicious brush fires

Seven brush fires started Friday night; Trail police investigating

Killer of Calgary mother, daughter gets no parole for 50 years

A jury found Edward Downey guilty last year in the deaths of Sara Baillie, 34, and five-year-old Taliyah Marsman

Toddler seriously injured after falling from Okanagan balcony

RCMP are investigating after a two-year-old boy fell from the balcony of an apartment in Kelowna

Cost jumps 35% for Trans-Canada Highway widening in B.C.

Revelstoke-area stretch first awarded under new union deal

Is vegan food a human right? Ontario firefighter battling B.C. blaze argues it is

Adam Knauff says he had to go hungry some days because there was no vegan food

Winds helping in battle against fire threatening northern Alberta town

Nearly 5,000 people have cleared out of High Level and nearby First Nation

B.C. sends 267 firefighters to help battle Alberta wildfires

Out of control fires have forced evacuations in the province

Calgary Police looking for missing man who may be heading to B.C.

A man last seen on May 15 in Calgary may be heading to the Kootenay region, according to police

LETTER: Fletcher ‘blurs reality’ on B.C. union public construction

Bridge, highway projects awarded to companies, not unions

Most Read