The economy in British Columbia is expected to gain strength through 2019, and a large part of this growth will be led by construction of major products and exports.
According to a Central 1 forecast released November 27, the housing market and an increase in consumer spending will contribute to growth of 2.5% this year.
“Growth will climb to a slightly stronger pace of 2.7 per cent in 2015 as U.S. demand and a low Canadian dollar fuel more export growth," said Central 1 regional economist Bryan Yu.
Forestry and manufacturing exports will drive growth over the next two years. The tourism sector will also contribute to economic strengthening.
A strengthening economy in the United States is vital for export growth in this province, the report said. Central 1 forecasts U.S. growth of more than 3% per year over the next four years.
LNG projects will lead the way for growth between 2016 and 2019. However, further delays of these projects would lead to decreased growth of around half a percentage point per year over that period.
Central 1 anticipates that consumer spending will stay strong in spite of “a soft hiring environment and mild population growth.”
The housing market will remain strong, according to the forecast. Central 1 said housing sales across the Lower Mainland are hitting levels not seen since 2007.
@EmmaHampelBIV
