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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.

 

RELEASE: Business Council Budget Recommendations Designed to Strengthen BC’s Competitiveness and Attract Investment
Global economic uncertainty places pressure on BC exports

Business Council of British Columbia has shared its views on the economy and some initial recommendations on Budget 2016 with the Standing Legislative Committee on Finance and Government Services (the Committee). The Council encourages the Committee to take note of the current uncertain global economy and to recognize the need to bolster the province’s competitiveness – particularly in the traded industry clusters that are central to BC’s prosperity.

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October 9 - In the News this Week: Five business and economic stories affecting BC

BCBC recaps the weekly business and economic news stories from the week ending October 9 relevant to British Columbia's economy.

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Carbon Pricing, Fusion Style – Policy Issues to Consider When Carbon Taxes Meet Cap-and-Trade

While there appears to be a growing consensus on the need to price carbon, there is no consensus on the most effective means of doing so – either via taxes or trading schemes.

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Growth in the Economy = Women

Women make up half of the world’s population. Looking ahead, this means half of the potential global labour force consists of women. Potential is the key word. There are many barriers to full labour force participation by women, notably in emerging economies, but also to some extent in the advanced economies too. But suppose parity is possible. It could add a total of between $12 trillion and $28 trillion to global GDP by 2025. Over a 10 year period beginning in 2015, this would be equal to between $1.2 trillion and $2.8 trillion per year. Importantly, this “extra” economic growth would be on top of baseline forecast growth rates, which have been rather subdued of late.

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Release: Business Council welcomes the conclusion of the Trans Pacific Partnership Negotiations
New opportunities for Canada's Gateway to the Asia Pacific

Vancouver, BC - British Columbia business leaders welcome the successful conclusion of the negotiations to establish the Trans-Pacific Partnership (TPP).  Canada and 11 other Asia-Pacific nations have been working toward a TPP agreement for more than two years.  

“Given British Columbia’s position as the country’s gateway to the Asia-Pacific,  we recognize the importance of ensuring that Canada is part of this landmark trade and investment agreement with countries that collectively are home to more than 800 million people and generate $28 trillion in annual economic activity,” said Greg D’Avignon, President and Chief Executive Officer of the Business Council of British Columbia.  “The Business Council believes the TPP will help the Canadian and the BC economies grow by removing tariffs and other barriers, enabling more of our export industries to build new business, and strengthening the position of Canadian companies in global supply chains encompassing commodities, manufactured goods, and tradable services.” 

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September 25 - In the News This Week: Five Business and Economic Stories Affecting BC

BCBC recaps the weekly business and economic news stories from the week ending September 25 relevant to British Columbia's economy.

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September 18 - In the News This Week: Five Business and Economic Stories Affecting BC

BCBC recaps the weekly business and economic news stories from the week ending September 18 relevant to British Columbia's economy.

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Finlayson Op-Ed: 3 Reasons we don't need to worry about inflation (Troy Media & Business in Vancouver)

Across most of the advanced economies, inflation is running well below the rates targeted by central banks.  In the United States, the principal inflation measure tracked by the Federal Reserve sits at barely 1 per cent, despite an expanding economy and a tightening labour market.  In Japan and Eurozone, central banks have set policy interest rates at zero and are aggressively pumping money into the economy to avoid deflation – defined as a generalized fall in prices.  In both the UK and Canada, the short-term policy interest rates directly controlled by central banks remain near all-time lows.  Almost everywhere, financial markets seem to be discounting the prospect of higher inflation.  As Bank of England Governor Mark Carney recently observed, even today, some six years after the bottom of the 2008-09 slump, “there are profound secular and cyclical disinflationary forces at work in the global economy.”

Looking ahead, an argument can be made that we should worry less about the prospect of escalating costs and prices across multiple markets for goods, services, labour, and raw materials – i.e., about inflation. There are several reasons why.

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September 4 - In the news this week: Five Business and Economic Stories Affecting BC

BCBC recaps the weekly business and economic news stories from the week ending September 4 relevant to British Columbia's economy.

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Imagining a “Post-Inflation” World

Across most of the leading advanced economies, inflation is running well below the rates targeted by central banks. In the United States, the principal inflation measure tracked by the Federal Reserve sits at barely 1%, despite an expanding economy and a rapidly tightening labour market. In Japan and the Eurozone, central banks have set policy interest rates at zero and are aggressively pumping money into the economy to avoid deflation – defined as a generalized drop in the price level. In both the UK and Canada, the short-term policy interest rates directly controlled by central banks remain near all-time lows.

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August 21 - In the news this week: Five Business and Economic Stories Affecting BC

BCBC recaps the weekly business and economic news stories from the week ending August 21 relevant to British Columbia's economy. This week we look at: falling oil, falling markets, negative outlook for the global economy; home prices in British Columbia continue to rise; provinces move forward in developing climate plans; CHART: Canadian cities hold three spots on the list of the top five most liveable cities; and Vancouver office space vacancy spikes.

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August 7 - In the News This Week: Five Business and Economic Stories Affecting BC

Each week we recap five economic and business news stories impacting British Columbia's economy. For the week ending on August 7th, week we take a look at:

  • Federal election kick off,
  • Canada's mediocre job numbers,
  • Another Vancouver tech firm gets global recognition,
  • Trans Pacific Partnership talks break down,
  • and
  • Oil prices and the Canadian dollar - both continuing to drop

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Recent international trade numbers suggest some improvement in Canada's limping economy

Statistics Canada’s just released snapshot of Canada’s trade performance in June offers a hint that the much anticipated upturn in non-energy exports may finally be materializing. 

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Finlayson & Peacock Report: BC holding its own in economic headwinds (Business in Vancouver)

Against the backdrop of a choppy and risk-prone global economy and slowing growth in Canada, B.C. is poised to be atop the provincial growth rankings this year.

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Finlayson Op-Ed: Adding up empty economic victories in a land of cheap money (Troy Media, Business in Vancouver, and Plant)

The Bank of Canada’s recent decision to trim its short-term policy interest rate by another 25 basis points – taking it to a near record low level of 0.5% – acknowledges that the energy-related downturn in capital spending and exports in Canada has been greater than it was expecting at the beginning of the year – and the pain is likely to persist.

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Solid Gains in Retail Spending Suggest British Columbians are Optimistic

Following an unusually weak period in 2013, retail spending in BC has steadily strengthened and is now growing at the strongest annual pace since the 2010 Olympics. The total value of retail sales surged in May by 8.3% over the same month of last year. What’s more, BC is now leading the country in the growth of retail sales at a time when activity has slowed markedly in some other provinces. In Alberta and Saskatchewan retail sales are now well below year-ago levels, even on a non-inflated adjusted basis. Canada-wide growth in retail sales is running around 2.5%. Sales in BC are growing at about three times the national pace. Ontario is quite closely aligned with BC as retailers there are seeing spending growth of about 5%.

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Business Alert: No Change in WorkSafeBC Average Premiums for 2016

WorkSafeBC recently announced that the average “base premium rate” in 2016 will be unchanged from 2015, continuing the pattern from last year. The average rate charged to employers is being set at $1.70 per $100 of assessed payroll, exactly the same as in 2015. 

This should come as welcome news for the employer community, particularly in light of a seeming onslaught of government-mandated and/or policy-driven cost increases in so many other areas (Medical Services Plan premiums, fuel taxes, electricity rates, water rental charges, environmental assessment fees, etc.).

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Finlayson Op-Ed: Planning Ahead for Ongoing Change? (PeopleTalk Magazine)

Most people are aware that the population in Canada and other western countries is aging, that longevity is increasing, and that the front-end of the large baby boom generation has started to retire.  Fertility rates have also fallen, which means the future supply of workers will be under additional downward pressure even as the ranks of seniors swell.  But how quickly will our population grow, and age, in the next 20 years? Will employers soon face a dramatic shortfall of working-age British Columbians?

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In the News This Week: Five Business and Economic Stories Affecting BC

Each week we recap five economic and business news stories impacting British Columbia's economy. This week we look at:

  • Bank of Canada's interest rate change,
  • The new Canada Energy Strategy,
  • BC confirms a surplus for 2014-2015,
  • The Iran Nuclear Agreement,
  • Canada's inflation numbers,

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BC Economic Review & Outlook - Mid-Year Report

Amid External Headwinds, BC's Economy Is Holding Up Well

Against the backdrop of a choppy and risk-prone global economy and decelerating growth here in Canada, British Columbia is holding its own. As a small trade-oriented jurisdiction, the province is certainly not impervious to the economic headwinds, whether they blow globally or from within Canada. Sluggish commodity prices and the oil-driven recession unfolding in Alberta and Newfoundland are affecting all regions of Canada and have prompted us to trim our growth BC outlook relative to expectations back in January. However, by Canadian standards British Columbia looks well-positioned for a decent economic performance over the next 18-24 months.

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