British Columbia has received an average grade on the Conference Board of Canada’s latest economy report card, released May 15.
With an overall score of “B,” the province is performing in the middle of the pack in Canada, which also scored a “B.”
The grade is a reflection of challenges in taking advantage of new opportunities, particularly in Asia, the report states.
“Like Saskatchewan and Alberta, B.C. is blessed with an abundant supply of natural resources,” said Conference Board senior vice-president and chief economist Glen Hodgson. “But it depends more on lumber exports, which have been constrained by the sluggish state of the United States housing market over the past few years.
“Shale gas, which could be exported to Asia as liquefied natural gas, offers a significant opportunity.”
The province received a “C” on employment growth, as employment fell by 0.2% in 2013. The report said growth in the province is expected to increase with growth in lumber demand from the U.S.
A “B” in its unemployment rate also reflects the damage to the province’s forestry sector due in part to pine beetle damage.
B.C. was the only province to score an “A” foreign direct investment, which the board said reflects the fact that it is an “outward-looking province.”
The highest scores were found in Alberta, Saskatchewan and Newfoundland and Labrador. This is due to the abundance of energy and other resources which have seen high global demand. Resource exports have led to higher incomes and increased consumer spending.
Globally, Canada scored fifth in the study when compared with its “international peers,” behind Australia, Ireland, the U.S. and Norway, which each received an “A” rating.
