BC Economy and Job Market to Gain Momentum Over 2014-2015

Against a more balanced and somewhat stronger global growth setting, BC’s economy should make progress in 2014, on the heels of a rather disappointing 2013. We expect the province’s real GDP to advance by 2.3% this year – solid, but not spectacular. By 2015, further improvements in the global economy and a substantial jump in capital spending in BC should push GDP growth above the 3% mark.

Against a more balanced and somewhat stronger global growth setting, BC’s economy should make progress in 2014, on the heels of a rather disappointing 2013. We expect the province’s real GDP to advance by 2.3% this year – solid, but not spectacular. By 2015, further improvements in the global economy and a substantial jump in capital spending in BC should push GDP growth above the 3% mark.

Highlights

• Expected improvements in the global economy, including a stronger US performance and a return to (slight) positive growth in the Eurozone, provide a more favourable backdrop for the BC economy as 2014 begins.
• BC’s real (inflation-adjusted) gross domestic product is projected to increase by 2.3 % this year, up from an estimated 1.4% in 2013. In 2015, real GDP is predicted to rise by at least 3%.
• The stronger growth trend over 2014-15 reflects modest gains across many different segments of the provincial economy. Higher exports, an acceleration of major project construction, increased Gateway activity, a pick up in tourism, and some growth in consumer spending should all contribute to a more robust economic expansion.
• Although the evidence is still preliminary, we believe the job market is finally on the mend after a disappointing 2013, with employment likely to increase by 1.4% this year.
• By 2015, construction of LNG facilities and related pipelines and upstream natural gas development should give the provincial economy an additional boost.