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

Striking Western Forest Products workers willing to ‘modify position’ if talks progress

Brian Butler, USW 1-1937 president, says union and WFP to meet Thursday, Dec. 12

Midgets tie Alberni Valley Bulldogs, lose to Kerry Park Islanders

It was a bit of a rough road trip for the North Island Midget Eagles.

North Island Bantam Eagles are the top team in VIAHA’s Tier 2 division

“If we continue to play like that we are going to be a tough team to contend with come playoffs”

North Island Peewee Eagles dominate Cowichan Valley Capitals at Cruickshank Arena

The game against the Capitals wasn’t close at all, as the Eagles pounded them with seven goals.

Local author talks about his book ‘The Blue Haired Girl’

Adam Hayes sat down with North Island Gazette Editor Tyson Whitney for an interview about the book.

B.C. woman charged in connection to stolen vehicle smash-up in Kamloops

Kersten Ina Peters was arrested in the Fraser Valley on Friday, Dec. 6

Tavares scores twice as Maple Leafs earn 4-1 win over Canucks

Vancouver sees two-game win streak snapped

UPDATED: No survivors in Gabriola Island plane crash: RCMP

Coroner confirms multiple fatalities after small plane goes down Tuesday night near Nanaimo

VIDEO: Harbour Air makes history with first electric aircraft test flight

Successful flight marks first of its kind in the world

The Grinch who Stole a Hedge: Security camera captures Chilliwack tree theft

RCMP arrives as person calmly walks away with tree in downtown area

The Russell Troupe finds a comfort zone in small Island community

Family gathering with two parents and five kids a common scene around Chemainus

Salmonella outbreak in Canada linked to rodents and snakes

92 cases of salmonella across six provinces, including B.C.

Meng Wanzhou wins right to more documents involving arrest at Vancouver airport

Defence lawyers allege the Huawei executive was unlawfully detained, searched and interrogated

Toronto Raptors, Don Cherry top the list of Canadians’ Google searches in 2019

‘Champions’ was the theme of the last year, Google said

Most Read