B.C. economy to grow in face of global turmoil

Credit Union sees three per cent growth for province, while poll finds pessimistic residents hunkering down

Growth in the B.C. economy is forecast at at least three per cent in 2016 and beyond despite a downturn in global markets that has fueled consumer pessimism.

B.C.’s economy is forecast to grow at a healthy clip of three per cent this year despite growing global financial uncertainty that has seen stock markets plunge and the Canadian dollar swoon in tandem with the dive in oil prices.

That prediction comes from Central 1 Credit Union senior economist Bryan Yu, who says the province will lead Canada in growth and should weather the global economic turmoil well, thanks to improved exports and tourism due to the weak loonie.

“B.C. will continue to benefit from low interest rates and a lower currency, despite challenges presented by a weak commodity sector,” Yu said. “Lifted by household demand and housing investment, economic growth will ease slightly from 2015 but remain moderate.”

Yu also expects economic growth to average three per cent from 2017 on, with steady consumer activity and higher business investment tied to major project construction.

His forecast assumes one large liquefied natural gas terminal will be built in B.C. and Yu cautioned growth would be slower at about 2.5 per cent and unemployment higher by 0.5 per cent if a new LNG plant fails to materialize.

He predicts unemployment will edge up slightly in 2016 to 6.3 per cent before declining in subsequent years.

The forecast is in contrast to a new Insights West poll that shows B.C. residents have become considerably more pessimistic about the economy and many are adopting a frugal mindset as they hunker down for financial trouble.

Two-in-five of those surveyed expect B.C.’s economy to decline and at least 40 per cent said they plan to slash spending on entertainment, new clothes or dining out to prepare for tougher times.

The poll found 93 per cent expect to pay more for groceries over the next six months and 71 per cent expect higher real estate prices.

Nearly half of respondents said they’ve worried frequently or occasionally about the value of their investments.

Just Posted

Kelowna’s definitive Christmas market list

We’ve prepared a list of every market in the Central Okanagan

Festival of Trees returns to West Kelowna’s Mission Hill Winery

The fundraiser for the B.C. Children’s Hospital Foundation will run Nov. 23 to Jan. 4

Proportional representation vote continues to draw low numbers

Only 6.5 per cent of eligible voters have cast ballots so far in B.C. referendum

Kelowna Skating Club skaters take home 10 medals and three provincial titles

Ava Sanderson was among the winners of the 2019 B.C and Yukon Sectional Championships

Kelowna to host World Junior pre-tournament game

Team Russia will take on Team Sweden at Prospera Place on Dec. 18

Your weekday weather update

Flurries and more rain anticipated for the Okanagan - Shuswap

Protesters confront Environment Minister in B.C.

Protesters wanting more for killer whales confront Catherine McKenna

Humans reshaping evolutionary history of species around the globe: paper

University of British Columbia researcher had the paper published in the Proceedings of the Royal Society

Toronto ‘carding’ activist Desmond Cole stopped by police in Vancouver

Cole says his experience reveals what daily life is like for black and Indigenous residents

Commercial trucks banned from left lane of Coquihalla

B.C.’s Ministry of Transportation has introduced a new program that hopes to prevent accidents and closures on the Coquihalla Highway.

B.C. on track to record same number of overdose deaths as last year

128 people died of overdoses in September, bringing the total to more than 1,100 so far in 2018

Okanagan pickleball pair win bronze at nationals

Vernon and Kelowna players reach podium in California

B.C. firefighters rescue horse stuck in mud

‘It happens more often than you’d think,’ says deputy chief

Couple allegedly caught staking out Okanagan home

The man and woman were seen in a black Suzuki Tracker with a white back

Most Read