BCBC recaps the weekly business and economic news stories relevant to British Columbia's economy.
1. Signed Project Development Agreement next step to advance largest capital investment in BC's history
On Monday, the Provincial Government and Pacific NorthWest LNG signed the Project Development Agreement (PDA) which provides the proponent and government with long term certainty on specific tax and regulatory provisions. The $11 billion LNG facility near Prince Rupert and the corresponding investments in pipeline and upstream gas production in the Northeast of the province amount to a total capital outlay of $36 billion through the life of the project. The legislature will resume sitting on Monday, July 13th to introduce and debate the PDA enabling legislation.
2. World watches unfolding Greek economic crisis
The Greek financial crisis presents the first true test for the twenty year old Euro currency. There is the potential for movement in the stalemate between Greece and its European counterparts, particularly Germany and France, when their respective political leaders meet on this weekend to discuss the latest economic reform proposal from Greece.
While the extent to which this will impact the broader Canadian economy is not clear, it is already having an impact on small businesses whose viability depends on Greek imports into Canada.
Keep track of Greece’s financial health with these interactive graphs, updated daily by The Economist, as well as a look at their short-term payment schedule
3. Has Canada entered into recession?
According to a TD Bank senior economist, the answer is yes. While the country’s official Q2 economic performance has not yet been released by Stats Canada, the economy shrank 0.6 percent in April, following on an estimated first quarter decline of 1 percent. And on Thursday, the IMF cut Canada's 2015 growth projection from 2.2 per cent to 1.5 per cent. The Bank of Canada will meet on July 15th where it will determine any change to its policy interest rate.
4. China’s stock market: The bubble has popped
Since June 12th, the Shanghai Composite Index has fallen 32% and the Shenzhen Composite Index has dropped 40%, in what some are calling an “all-out market panic.” Some economists are predicting government intervention may bring similar consequences to those seen following the Tokyo market crash in the early 1990’s, while others are expressing concern that the much anticipated increase in Chinese consumer spending may by supressed.
5. Silicon valley expats aiming to accelerate growth at Canadian tech startups
A recent Business in Vancouver article highlights a three day Silicon Valley based mentorship programme to support the growth of Canadian tech startups. A recent BC stats report found that the province's technology sector continues to outperform the overall economy.
Troy Media published Jock Finlayson’s monthly op-ed titled BC Economy will soon hit $250 billion