Western Canada is poised to far outpace Eastern and Central Canada for GDP growth, according to RBC's latest provincial outlook.
The bank expects B.C.'s GDP to grow 2.2% in 2008 and 2.9% in 2009. Canada-wide GDP projections are for 1.4% growth in 2008 and 2.5% growth in 2009. B.C.'s employment growth is similarly expected to outpace the Canadian average.
"The current decade has proven to be very prosperous for British Columbia as 2007 marked the sixth consecutive year of economic growth above of the national average," said Craig Wright, RBC's senior vice-president and chief economist. "We expect this trend to continue right through to 2010."
The three other western provinces are similarly expected to outpace the Canadian average for growth.
Wright warned that B.C.'s exporters are likely to face challenges, particularly the province's lumber producers.
B.C. retail sales growth is another challenge. RBC expects 4.5% retail sales growth in 2008, which is below the 5.2% Canadian average.