Strong global demand for commodities and favourable government policies should lead B.C.'s economy to be the second-fastest growing this year after Saskatchewan, according to a new report by CIBC World Markets.
Demand for resources is forecast to drive B.C.'s economy up 2.8% in 2010 and 3.4% in 2011. Only Saskatchewan is expected to have stronger economic growth of 3% in 2010 and 4.1% in 2011.
The report also expects the harmonized sales tax to spur investment and provide an avenue to enhance the province's relatively poor productivity record, persistently among the worst in Canada.
B.C. should also benefit with a broadening and deepening export base with expanded transportation infrastructure allowing the province to lever its status as the gateway to the Asia Pacific.