B.C.'s economy is expected to outperform the national average in 2010 with growth rebounding 2.7% after a 2% contraction this year, according to Scotia Economics' provincial trends report released Thursday.
Slowdowns in the transportation and resources sectors are expected to subside while the forestry industry regains some footing. Previous concerns with the construction industry have been somewhat alleviated by a substantial amount of infrastructure spending being pulled forward, the report said.
Scotia Economics expects a soft landing for the construction sector in the coming year despite a sharp pullback in residential construction this year.
The outlook for the forest sector is expected to be better next year as signs of stabilization are starting to show in the Canadian and U.S. housing markets, a key for a turnaround in lumber demand and prices. Conditions have deteriorated significantly this year with exports plunging more than 50% off 2007 levels.
B.C. suffered one of the most severe corrections in housing prices this year and is among the worst hit in terms of job losses, leading to a 9% year-to-date decline in retail sales.