After one of the worst contractions since 1982, the B.C. economy is forecast to rebound as one of the fastest growing in Canada next year, according to RBC Economics' provincial outlook report.
Following a 2.6% decline this year, real GDP in B.C. is expected to rise 3.2%, the second fastest rate after Saskatchewan (3.9%).
Vancouver's hosting of the 2010 Winter Olympic and Paralympic Games in February and March is expected to be a boon for B.C.'s tourism sector, which should translate into higher employment and retail spending in the first quarter of 2010.
For the year, RBC projects retail spending to rise 5.7% to $56.3 billion, recovering close to 2008 levels after an estimated 5.8% decline in 2009. Housing starts are also expected to improve 57.1% to 24,500 units from 15,600 units in 2009. However, the total number will still be 28% lower than 2008.
The report also suggested B.C.'s forestry sector should finally begin emerging from its deep slump as the U.S. housing market finally begins to improve.
Stronger demand for commodities like metals and coal, and further development of natural gas fields in B.C. should also contribute to boost exports next year.