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Published byBrent Flynn Modified over 9 years ago
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British Columbia Economic Outlook Carol Frketich, BC Regional Economist
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British Columbia Overview Strong Domestic Economy Record Low Unemployment Real Income Growth Low Inflation & Declining Interest Rates Global demand for commodities
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Annual growth in real GDP Sources: Statistics Canada, CMHC forecast Western Canada Leads Economic Growth
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BC’s Domestic Economy is Strong Investment Infrastructure – 228 major projects (over $20 million) started in the Lower Mainland alone – estimated value $53 billion RAV line - $1.9 billion Vancouver airport expansion - $1.8 billion Vancouver convention centre - $883 million Golden Ears Bridge - $650 million
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M&E investment - Mining 2007 Investment in mining exploration reached a record $416 million Overall, there were 472 exploration stage projects in BC in 2007. Oil and gas rights reached over $1billion in 2007, shattering previous record of $647 million set in 2003. Source: Ministry of Energy, Mines and Petroleum Resources # Wells Drilled
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Total BC Housing Starts, units Residential Investment adds to growth Source: CMHC Forecast
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Renovation and New Construction $ billions Sources: Statistics Canada historical, Canada Mortgage and Housing Corporation forecast (F) New Construction $8.8 billion in 2008 Renovation $7.0 billion in 2008
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BC’s Domestic Economy is Strong Investment Infrastructure Machinery and equipment Residential Labour Markets Growth industries
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BC’s Tight Labour Market Unemployment rate, per cent Alberta BC Ontario Source: Statistics Canada Annual increase in employment, thousands of jobs
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Top Ten BC Growth Industries Industry Growth 2003-2006 Growth 1997-03 Construction – other15.00.7 Transportation engineering construction14.9-4.3 Non-residential building construction14.7-4.1 Residential building construction12.71.7 Meat product manufacturing11.92.9 Primary & fabricated metal product mfg.11.23.0 Warehousing & storage10.22.4 Computer & peripheral equipment mfg.9.918.4 Cement & concrete product mfg.9.5-2.1 Electric power engineering construction9.46.1 Source: Statistics Canada, BC Business Council
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BC’s Domestic Economy is Strong Investment Infrastructure Machinery and equipment Residential Labour Markets Growth industries Retail sector Consumer confidence Population growth
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Consumer Confidence, 1991=100 Source: Conference Board of Canada Consumer Confidence Trending Lower Energy Price Spike US Sub-prime concerns surface
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Migration & Population Growth Sources: Statistics Canada and CMHC forecast Net International Net Interprovincial People
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Trade Sector Challenges & Opportunities High C$ US housing slump Thousands of units, SAAR Source: U.S. Bureau of the Census Port of Prince Rupert High Commodity prices
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US$ index; 1997 = 100; annual average Source: TD Economics Commodity Prices Surged
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Consumer Price Inflation, per cent Canada Total CPI Canada Core CPI Source: Bank of Canada Inflation in Canada Trending Lower
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Risks to the Outlook
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BC Key Economic Indicators 2005200620072008FYTD2009F Real GDP (% change)4.53.33.12.9na3.2 Net Migration 48,44 4 48,27654,95256,800na56,300 Employment (% change)3.33.13.22.6 2.0 Unemp. Rate (%)5.94.84.2 4.3 Retail Sales (% change)4.46.87.2na4.2na Avg weekly wages (% change) 2.63.13.0na3.1na $ Exports (% change)10.2-2.0-6.0na-9.7na Sources: Statistics Canada, CMHC Housing Market Outlook Q2 2008
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