British Columbia will stay in top spot in terms of leading the country in economic growth, according to a Conference Board of Canada report released June 13.
The economy is expected to grow by 3% annually over the next two years, the board said, and one of the biggest boosts will come from the province’s housing sector.
“British Columbia’s economy has been growing by 3% since 2014, and this positive outlook is expected to continue for the foreseeable future,” said Marie-Christine Bernard, the Conference Board’s associate director of provincial forecast.
“Strength in forestry, construction, transportation and the real estate industry put the province in an enviable position as Canada’s economic growth leader.”
Only three other provinces will see growth over 2% in 2016, according to the report: Ontario (2.8%), Manitoba (2.1%) and Prince Edward Island (2.3%).
Alberta is not expected to fare well this year. That province is going through its worst economic downturn in 30 years as it struggles to weather weakness in drilling, the board said, and this year will see a continued recession with the economy contracting by 2%. It is not just the low drilling activity that is hurting that province, however.
“Nearly all sectors of the economy are struggling and, if that was not enough, the wildfires in northern Alberta have added to the economic woes of the province,” Bernard said. “Wildfires in Northern Alberta temporarily shut crude oil production from the oil stands and hampered economic activity in the region.
“The good news is that oil prices are improving and a recovery is forecast for the province next year.”
Growth of 2.5% is forecast for Alberta in 2017 as Fort McMurray is rebuilt.
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