RBC Economics is predicting that the softening of B.C.’s economy in late 2010 and early 2011 will be temporary and that the province’s economy will grow 2.6% this year.
That was the key message in RBC economics’ provincial economic outlook report released this morning.
RBC senior vice-president and chief economist Craig Wright said some of the current levelling off is connected to B.C.’s “remarkable” recovery and growth of 3.8% last year.”
“There was in large part a snap back in export growth and we also saw fairly robust consumer sector and some of that was obviously related to the 2010 Games,” he said.
“So some of that activity probably borrowed from the current environment and explains a levelling out that we’re seeing in some of the key indicators.”
Wright said RBC Economics is viewing the current soft patch as “a pause” from an overall growth trend. He predicted that B.C.’s exporters will continue to make inroads into the Chinese market and noted that the province’s forestry sector has brought new life back into the forest product sector.
“We’re still looking at a decent overall growth outlook, continued firm commodity prices and an environment of on-going low interest rates,” he said.
Key to returned momentum, he said, will be a recovery in employment numbers.
“If we get that expected recovery in employment that will open the door for a recovery in the consumer side as retail sales have stalled out a bit this year.”
Jenny Wagler
Twitter: JennyWagler_BIV