British Columbia among economic growth leaders for 2006
and 2007, says RBC Economics
Proposed softwood lumber agreement caps sector growth
TORONTO, June 22, 2006 — British Columbia's
economy will remain healthy with solid growth of 4.0 per cent
in 2006 and 3.7 per cent in 2007, according to an economic
outlook released today by RBC Financial Group.
"B.C.'s healthy economic growth will continue at a strong
pace this year and into the next, ranking third of all provinces
this year and second in 2007," said Craig Wright, vice-president
and chief economist, RBC. "While there are numerous strengths
present in B.C.'s economy, risks do exist which could hinder
future growth."
According to the report, among the factors contributing to
the province's booming economy for the long-term are the strength
of the gas fields around the Greater Sierra and Cutbank Ridge
regions, a high-tech rebound, the lift provided by the Vancouver
2010 Olympic and Paralympic Winter Games, B.C.'s exposure
to Asia-Pacific trading opportunities, fiscal strength and
a booming construction sector.
RBC notes that slipping commodity prices are a risk to growth
and that while the proposed softwood lumber agreement offers
mild near-term positives for the economy, it could become
more of a bane than a boon to the forestry sector.
The return of the majority of past softwood lumber duties
and the prospects for a greater understanding of the rules
are mild near-term positives, but longer-term could be more
of a bane than a boon to the forestry sector. "Though
the details of the softwood lumber agreement continue to be
subject to negotiation, the proposed framework would by no
means settle the softwood dispute and could cap future growth
in B.C.'s forestry sector throughout its seven year timeline,"
added Wright.
While regional differences exist across the country, Canada
is well positioned to absorb global economic shocks as a result
of geographically diversified investments, a strong consumer
sector and sound fiscal policy. Newfoundland and Labrador
will be the provincial growth leader this year with activity
in the oil and nickel sectors driving growth. After Newfoundland
and Labrador, the strongest economies will be west of the
Manitoba-Ontario border for 2006.
The RBC Economics Provincial Outlook assesses the
provinces according to economic growth, employment growth,
unemployment rates, personal income growth, retail sales,
housing starts and the Consumer Price Index.
According to the report (available online as of 8 a.m. E.D.T.,
at www.rbc.com/economics/market/pdf/provfcst.pdf), provincial
forecast details are as follows:
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For more information contact:
Craig Wright,
RBC Financial Group Economics, (416) 974-7457
Derek Holt,
RBC Financial Group Economics, (416) 974-6192
Kathy Bevan, RBC Financial Group Media Relations,
(416) 974-8810
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