Indicators of economic performance in 2012’s first quarter were mostly positive for B.C., according to RBC Economics.
The bank's Provincial Outlook expects the provincial economy to continue its current pace, growing by 2.6%, in line with the national average.
Craig Wright, senior vice-president and chief economist, RBC, said, “We saw a broad-based improvement across the provincial economy early this year.
“Employment was up year-over-year, unemployment dropped to a three-year low in April and retail sales rose to their strongest annual rate in two years.”
Housing starts sustained levels that were well ahead of the same period last year, while the manufacturing sector achieved minimal gains overall.
The report found the mining sector continued to produce a mixed bag. The sector enjoyed a surge in coal production and a strong momentum in natural gas, but metals such as copper, iron ore, gold and silver experienced further drops.
According to the report, the projected growth for the remainder of the year will be slightly off the pace set for the past two years (3.0% in 2011 and 2.9% in 2010), somewhat hampered by declines in exports to the U.S., Japan and the European Union. Wood product sales to China rose by just 3.5% in the first quarter – down considerably from the average 76% surge in the past five years – while coal exports rocketed upward by 230%.
Looking ahead, Wright noted that two new major projects starting up this year will help boost B.C.’s economy.
“The $3.3 billion modernization of Rio Tinto Alcan’s aluminum smelter in Kitimat [pictured] and the federal government’s $8 billion order for seven non-combat ships from North Vancouver’s Seaspan should help the B.C. economy reach GDP growth of 2.9% in 2013,” added Wright.
The Provincial Outlook assesses the provinces according to economic growth, employment growth, unemployment rates, retail sales, housing starts and consumer price indices.
