Economic expansion in northeast British Columbia will be slow this year and next, according to a Central 1 Credit Union report issued September 10, with employment shrinking 4% this year.
The economy in the region – which includes Fort St. John, Fort Nelson, Tumbler Ridge and Dawson Creek – is heavily reliant on its resource base. One of the biggest factors limiting growth, said the association, is coal.
According to Bryan Yu, Central 1 economist, although some sectors will see expansion in the short term, low coal prices have led to mines being idled and development being cut down.
This is not the only reason growth will be limited, he said.
“Despite positive natural gas and forestry production, growth will be limited by modest gains in the agriculture sector, an exceptionally weak market for coal and reduced commodity exploration,” Yu said.
Gas drilling and exploration, he said, will be negatively affected by uncertainty over the future of LNG projects in the northern parts of the province.
The news isn’t all negative.
The credit union expects that between 2015 and 2017, employment will grow by about 2% per year.
Mitchel Chilcott, CEO for North Peace Savings and Credit Union, said that although the future of LNG projects up north is unclear, there is ample potential in that area should some of them come to fruition.
“Eventually, LNG and several other anticipated projects will have substantial and long-lasting impacts to our region, communities and membership,” he said, reiterating that nothing is certain at this point..
Yu also forecasts housing prices to rise 7% this year, and 3% per year between 2015 and 2017.
