B.C.'s economy is expected to recover from its annual decline, according to B.C.'s Economic Forecast Council.
The council forecasts B.C.'s gross domestic product to increase 2.9% from a decline of 2.5% in 2009. The range of forecasts from the 14-member council ranged from an optimistic 4.1% increase by the Conference Board's Marie-Christine Bernard to a low of 2.2% by Laurentian Bank Securities' Carolos Leitao.
Helmut Pastrick, chief economist at Central 1 Credit Union, forecast moderate growth of 2.5% this year. But, he doesn't expect output to return to pre-recession levels until 2011, which he forecasts will experience 2.6% growth.
Most of the growth after 2011 will come from private investment in the domestic economy assisted by more residential housing and consumer activity. He suggests the recession has created a substantial backlog of consumer and business demand.
He expects construction will be one of the fastest growing sectors over the next five years. He expects construction sector GDP to jump 50% between 2009 and 2014 leading to a 30% increase in employment. Much of that will come from a combination of a resurgent residential housing market, growth in the utilities, transportation and mining sectors and demand in the commercial real estate sector.