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Economy

As trusted economists and policy advisors to business and government leaders, the Council relies on sound, evidence-based analysis to inform its policy recommendations. Through diligent tracking of BC’s economic performance, we help identify the opportunities and challenges the province must navigate in order to reach its full potential.

 

Finlayson Op-Ed: Too little investment puts BC economy at risk (Troy Media)

Economists have long worried about Canada’s sluggish productivity growth and the seemingly ever-widening gap with the United States on this key indicator of economic well-being.  It is widely recognized that the problem stems in large part from relatively low levels of investment in Canada, particularly in certain types of assets that are strongly associated with productivity improvements in modern economies – machinery, plant, equipment, software, and digital and other advanced and process technologies.  

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Release: Budget 2015 Reflects Sound Fiscal Management and the Benefits of a Diverse Economy

The Business Council of British Columbia applauds today’s provincial budget, which features another three years of operating surpluses and a plan to reduce the province’s net debt measured relative to the size of the economy (GDP). Budget 2015 is built around prudent economic and revenue growth projections and includes a handful of modest, but well-targeted, spending increases. 

“We support the government’s budget plan and acknowledge its steady stewardship of the province’s finances,” said Greg D’Avignon, President and CEO of the Business Council. “The government is focusing most of the proposed spending increases on health care and education while containing expenditure growth in most other areas.”

“We believe, however, that overtime it will be necessary to refocus efforts on strengthening BC’s competitive position through increased investments in infrastructure, further streamlining of regulatory processes, and the refinement of current tax policies to spur business investment and innovation,” added D’Avignon.

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Finlayson Op-Ed: Economic prospects bright for BC (Vancouver Sun)

As Finance Minister Mike de Jong gets ready to table his 2015 budget, the incoming economic data paint a mixed picture.  Projections for global growth have been marked down by the International Monetary Fund and other leading forecasting agencies.  The Eurozone hovers on the brink of recession, China’s once frenetic economy is slowing, and the prices of many internationally traded commodities remain in the doldrums.   

Canada has also lost a step, with real gross domestic product (GDP) shrinking in November and the job market seeming to run out steam as 2014 progressed.  Last month’s decision by the Bank of Canada to trim its trend-setting overnight lending rate by 25 basis points signalled policymakers’ worries about the state of the national economy.  

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Release: Strengthening Asian Investment in British Columbia

Today, the Honourable James Moore, Minister of Industry and Minister Responsible for British Columbia, joined by the Honourable Michelle Rempel, Minister of State for Western Economic Diversification, the Honourable Teresa Wat, B.C. Minister of International Trade, as well as the Business Council of British Columbia (BCBC) announced a new project to attract Asian head offices to Vancouver. This project, entitled HQ Vancouver, will build on Canada’s competitive advantages in key sectors and attract major Asian firms to set up their North American head offices in British Columbia.

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An Update on Incomes

Statistics Canada recently published a fresh batch of data taken from the Canadian Income Survey. The picture that emerges is similar to what we have reported before. British Columbia remains a middling income performer within the national context.

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BC Poised for Decent Growth in A Turbulent World

The Business Council's first Economic Outlook and Review for 2015 projects a 2.6% increase in BC's real GDP and examines the impact on BC's economy of a number of factors including the global economic outlook, a rebounding US economy, declining oil prices and domestic factors such as housing starts and exports.

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Interest Rates in Canada - Lower for Longer

This week’s decision by the Bank of Canada to trim its overnight lending rate by 25 basis points (from 1% to 0.75%) caught the markets by surprise and also embarrassed the country’s economic forecasting community.

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Finlayson: Canada looks set for another year of modest economic growth (Troy Media)

The early weeks of 2015 have been a reminder that we live in a turbulent and risk-prone world. From plummeting oil prices to terrorist attacks in France, jittery stock markets, slowing growth in China, and renewed political uncertainty in Greece, there has been much to capture the attention of those inclined to fret about the future. But the underlying economic picture is more favourable than a glance at the newspaper headlines may suggest.

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Plunging Oil Price Good for the BC Economy in 2015…

The rapid and steep decline in world oil prices has prompted a fair amount of commentary on the accompanying economic impacts. For Canada, much of the analysis points to modestly negative economic implications, stemming from reduced business investment, lower corporate revenues, a decline in the value of exports, and diminished job creation in the oil patch. Lower oil prices also translate into a decline in revenues flowing to the federal government and to provinces like Alberta and Newfoundland.

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Finlayson Op-ed: Income inequality not a problem in Canada (Vancouver Sun, Troy Media)

Canada has long been known as a country that promotes the values of equity and fairness within our society. That helps to explain why the issue of economic inequality resonates with the media and among many of our political leaders. With a federal election expected sometime in 2015, inequality is sure to get more attention in the months ahead.

Globally, concerns over inequality are also on the rise. A recent article in The Economist magazine noted that 56 per cent of citizens in the advanced countries believe inequality is a problem. On most indicators, income inequality has indeed increased within most industrial countries, although it has diminished at the global level owing to a long stretch of relatively strong economic growth in China and many other emerging markets.

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Income Inequality: Canada and the U.S. Marching to Different Drummers

Canada has long been known as a country that promotes the values of equity and fairness within our society. That helps to explain why the issue of economic inequality resonates with the media and among many of our political leaders. With a federal election expected sometime in 2015, inequality is sure to get more attention in the months ahead.

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An Updated Look at BC’s Inventory of Major Capital Projects

In this issue of Policy Perspectives, we provide a summary of capital spending on “major” projects in British Columbia.

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Finlayson: Low Interest Rates make this a great time to invest in infrastructure
(Troy Media)

Ottawa has the fiscal room to invest in infrastructure projects

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Second annual survey shows strong partnerships and $373 million in charitable contributions by British Columbia’s business community

Today, the Business Council of British Columbia released the second annual study quantifying the charitable contributions made by the province’s business community, conducted by MNP LLP. The report, Prosperous Companies, Prosperous Communities found that in 2013 British Columbia businesses donated $373 million in cash donations, sponsorships and partnerships to the province’s charities with the top types of charities supported being social services, health, education and environment.

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Getting a Handle on the Environmental Goods and Services Industry

Previous editions of the Environment and Energy Bulletin were concerned with the criteria and tools that can shed light on how green jobs and other environment-related activities contribute to the economy. This paper is another piece in the exploration of that topic. Here, we adopt a somewhat narrower focus by looking at “the environmental goods and services producing sector” of the economy.

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A Note on Infrastructure Investment and Government Debt

The Business Council recently published a white paper on infrastructure policy and financing in British Columbia. One of the points made in the paper is that investing in certain categories of infrastructure assets – particularly transportation, communications and energy infrastructure -- can help to strengthen the foundations for prosperity by boosting productivity, expanding the economy’s ‘supply side’ capacity, and improving the competitive position of local industries engaged in global commerce.

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Finlayson: The Bank of Canada: An Overview (CPA Industry Update)

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The global and Canadian gender gap, 2014

The global and local conversation about the economic potential of women and the foregone opportunity from not yet achieving full gender equality is heating up again. The last really big and prolonged discussion happened in the late 1970s, the heyday of feminist activism.

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Release: Business Council of BC White Paper and Nov.7 Summit focus attention on BC infrastructure needs and issues

VANCOUVER, BC (Nov. 5, 2014) - With the economic prosperity of British Columbia and Western Canada relying increasingly on global trade and our ability to deliver goods to foreign markets, the Business Council of British Columbia (BCBC) today released Building BC for the 21st Century: A White Paper on Infrastructure Policy and Financing in advance of its second annual BC Business Summit (Building BC for the 21st Century: Innovation in Infrastructure), to be held on Friday, Nov.7 at the Vancouver Convention Centre. 

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The State of Industry-First Nations Relations in B.C. – Part II: RECOMMENDATIONS

Through our series on the state of industry-First Nation relations in B.C., the Business Council has sought to document and take stock of the economic reconciliation process in the province. The results of this work have highlighted a number of important and mainly positive trends: 1) increased aboriginal business formations; 2) a proliferation of economic agreements between industry, government and First Nations; 3) growing own-source revenues and capacity improvements at the community level; and 4) a generally positive outlook for the future of economic reconciliation. However, the research has also identified some areas of concern that have the potential to constrain the ability of all parties to move further down a reconciliation path that maximizes collective economic opportunities.

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