The word is out among economists: B.C. is poised to be the leader among provincial economies this year and next.
A May 28 report from the Conference Board of Canada predicts B.C. will be the only province with economic growth of more than 3% in 2015.
The new report bolsters BMO’s position that B.C. will outpace the rest of the provinces in terms of economic growth over the next two years.
Although gross domestic product (GDP) is supposed to reach 3.1% in 2015, it’s expected to drop to 2.7% by 2016.
BMO’s report predicted B.C.’s GDP would expand by 2.6% this year and fall to 2.5% the following year.
The Conference Board of Canada points to Vancouver’s red-hot housing market and the strength of the province’s exports as the big drivers.
But the report highlighted the uncertainty surrounding the proposed liquefied natural gas (LNG) industry.
“A long-awaited decision by Petronas and its partners on whether to move forward with a $36-billion project is expected this year. If it proceeds, it would be a game changer for British Columbia's energy sector,” the report said.
“While the forecast is generally positive, there are risks to the outlook. Job creation has been muted so far this year, and if this persists over the summer months it could hurt consumer confidence and the domestic economy.”
