B.C. economic growth to increase 2.2% in 2013: forecast

B.C.’s economy will pick up steam in 2013, Central 1 Credit Union predicts in a new economic forecast.

B.C.’s economy will pick up steam in 2013, Central 1 Credit Union predicts in a new economic forecast.

Economic growth in 2012 slowed, but is expected to pick up steam, thanks to headwinds coming out of the U.S.

“The U.S. is expected to gain speed during 2014 to 2017, which will help lift B.C.'s economy to higher growth rates after 2013,” said Helmut Pastrick, chief economist for Central 1.

“Domestic developments will also shape the province's economy and, in particular, the reversion to the provincial sales tax (PST) system from the harmonized sales tax (HST) will lift consumer spending and provide some inflation relief, though this will add business costs.”

B.C.’s economic growth slowed to 1.9% in 2013. The new forecast is for growth of 2.2% this year, ramping up to 2.8% in 2014, and hitting 3.7% between 2015 and 2017.

“The housing slowdown this year will reduce residential investment,” Pastrick said.

“The mild correction in the housing market will pull down economic growth in 2013 and 2014. Fewer housing starts in 2013 are a near certainty in an environment of declining housing sales and prices."

The unemployment rate is projected to steadily fall to below 5% by 2016, and 4% in 2017. That should have upward pressure on wages, Pastrick said.

nbennett@biv.com

@nbennett_biv

comments powered by Disqus

Also Read

More From Economy

After sifting through 460 nominations from across the province, the Small Business BC awards has culled its list of semi-finalists down to just 10 in ...

Read Article

It’s that time of year again -- Christmas time. You may have noticed.

Read Article

The outlook for commodity prices for British Columbia companies in 2015 is a mixed bag that includes... 

Read Article

Consumer prices were up 1.2% in British Columbia year-over-year to November, which is slightly higher than...

Read Article

Manufacturing sales in British Columbia jumped 7.9% in the 12 months to October...

Read Article

Subscribe to our mailing lists

* indicates required

Newsletters

* You can modify your newsletter subscriptions at the bottom of any newsletter you receive.
×