British Columbia remains among country's growth leaders,
says RBC Economics
TORONTO, October 13, 2006 — British Columbia's
economy remains strong with expected growth of 4.8 per cent
in 2006 and 3.7 per cent in 2007, according to a provincial
economic outlook released today by RBC.
"B.C. will remain among Canada's top growth leaders
this year and into the next despite existing economic risks
to growth," said Craig Wright, vice-president and chief
economist, RBC. "While there are parallels to economic
conditions during the mid-1990s when housing markets were
cooling amidst a softening U.S. economy and high commodity
prices, we forecast that the risks are more manageable this
time around."
RBC notes that the B.C. economy is sufficiently strong to
withstand housing weakness and continues to grow. The commodity
price cycle will cool, but prices should remain high enough
to stimulate exploration and development. Meanwhile, the province's
housing markets are likely to soften gradually, while provincial
in-migration remains strong.
According to the RBC report, numerous strengths provide a
firm backdrop for the overall B.C economy. First, the Vancouver
2010 Olympic and Paralympic Winter Games represent a multi-year
stimulus to the regional economy for at least the next five
years. In addition, the strength of the gas fields in the
Greater Sierra and Cutbank Ridge regions, solid international
trade, the thriving high tech industry and sharp improvements
to the B.C. government's finances all complement B.C.'s overall
growth. "Add it all up, and we think the B.C. economy
can continue to nip at Alberta's heels, along with Newfoundland
and Labrador, as one of the provincial growth leaders this
year and next," said Wright.
For the overall Canadian economy, RBC has revised its 2006
growth forecasts downward with Ontario being sharply downgraded
to last place among the provinces. Alberta and British Columbia
are now in first and second place respectively, bumping Newfoundland
and Labrador to third place for growth in 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.
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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
Beja Rodeck, RBC Media Relations, (416) 974-5506
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