Northern B.C. is about to pass Metro Vancouver for economic growth, according to a new forecast by Central 1 Credit Union.
Rising sales of coal, natural gas and copper are responsible for the turnaround, according to Central 1 chief economist Helmut Pastrick.
“Demand for the commodities produced in the north will be strong in coming years,” said Pastrick.
“The Lower Mainland will benefit indirectly from the northern recovery through the provision of a variety of services ranging from transportation, professional services, goods and administration services.”
Metro Vancouver has been growing its economy at a faster rate than Northern B.C. since 2008.
Pastrick expects lumber prices to rise as the U.S. housing industry starts to recover. But natural gas prices will face pressure due to growing supply in the U.S., he said.
In contrast, Pastrick expects copper and coal prices to be strong enough to support further expansion of output to meet growing demand from the Asia-Pacific region.
See next week’s Business in Vancouver for an insight into the resurging economy in Prince George.
