(Alpha Stock Images)

British Columbia’s economy is forecast to remain strong through 2020

Central 1 Credit Union says 2017 was a year of ‘stellar growth,’ and momentum will continue

B.C. is predicted to have solid economic growth through 2020 by a trade association of credit unions.

Central 1 Credit Union says 2017 was a year of “stellar growth” and the positive momentum will continue in B.C. for the next 24 months, despite a slower housing market.

The new forecast calls for a three per cent growth in the province’s real gross domestic product, which is the inflation-adjusted value of all goods and services produced in B.C.

Growth is expected to slow to just over two per cent next year, but Central 1 economists are calling for a rebound to 3.3 per cent by 2020, marking what they say has been “more than a decade of uninterrupted annual growth.”

Federal lending restrictions, provincial government policies and stepped up home construction will combine to keep a lid on B.C.’s housing market, but Central 1 does not foresee a price correction.

Bryan Yu, deputy chief economist at Central 1, says warning flags include trade disruptions due to trade wars or disputes over renewal of the North American Free Trade Agreement, but he says B.C.’s exports are spread across the province, limiting some of the risk.

Yu also forecasts faster wage growth for B.C. workers, as average unemployment moves toward four per cent over the next two years.

“Employers will face increasing challenges in finding workers to support operations as employment is constrained by growth in the labour force due to an aging population,” he says in a news release.

Overall, Yu predicts a surge in investment by the end of the decade as major private and public works projects get underway.

“B.C.’s economy remains in a strong position with consumer demand underpinned by high employment and income growth, rising exports and government spending,” he says.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Bella Coola sees biggest eulachon run in almost 20 years

Runs have been slowly coming up since 2012

O’Reilly found guilty of manslaughter in 2014 Anahim Lake murders

The court will set a date for sentencing on April 19

B.C., Alberta clash as Kinder Morgan suspends Trans Mountain work

Alberta Premier Rachel Notley promises “serious economic consequences” for B.C.

VIDEO: Work is play for this B.C. avalanche rescue dog

CARDA certified Joss’s Job is to save lives — but to her, it’s all a game

Whistler to open Canada’s first pod hotel

Pangea Pod Hotel to feature units big enough to fit a queen-sized mattress and not much else

Black Press Media acquires two new Alaska newspapers

New Media Investment Group to acquire the Akron (OH) Beacon Journal while Black Press Media takes on daily newspapers in Juneau and Kenai Alaska

Pinnacle pellets to feed hungry Japanese biomass industry

Canadian biomass company to sell 70,000 metric tonnes annually to Japan by end of 2019

Thieves target B.C. firefighters helping flood victims

The service has been helping with sandbagging efforts, as rural Oliver battles flooding

B.C. towns rank in top honeymoon destination worldwide

Vernon, Kaslo, Sunshine Coast and the Island hit Expedia.ca’s list of top 18 honeymoon destinations

Men arrested at Starbucks say they feared for their lives

Rashon Nelson and Donte Robinson were arrested in a Philadelphia Starbucks, becoming viral video

Olympic gold now official for B.C. weightlifter

Christine Girard’s bronze medal from 2012 Olympics upgraded to gold, IOC announces

Did a Canadian shoot down the Red Baron? A century later, debate hasn’t quit

Om April 21, 1918 two Canadians in their canvas-covered Sopwith Camel biplanes engaged the enemy

Most Read