British Columbia in the midst of a prosperous decade, says RBC



    TORONTO, July 3 /CNW/ - British Columbia's economy continues to trend
above the national average, although further weakness in its exports is
expected to restrain growth to 2.2 per cent in 2008 and 2.9 per cent in 2009,
according to a provincial economic outlook released today by RBC.
    "The current decade has proven to be very prosperous for British Columbia
as 2007 marked the sixth consecutive year of economic growth above of the
national average and we expect this trend to continue right through to 2010,"
said Craig Wright, senior vice-president and chief economist, RBC. "However,
the challenges facing the province's exporters are many and do not appear to
be letting up, particularly with respect to the rout in the U.S. housing
construction sector."
    According to the report, wood products are leading five of the top six
export categories showing declines so far this year, with only the energy
sector garnering a gain. Nevertheless, the province's strong domestic economy
continues to adequately compensate for the trade sector slump and should help
to keep British Columbia among the provincial growth leaders in Canada.
However, signs of cooling are emerging domestically as well. Housing resale
activity has levelled off and housing starts are forecast to soften over the
course of the next two years. Growth in non-residential construction appears
to be peaking. Consumer spending is on course to a slower pace as the momentum
generated by the recent run-up in employment and steady decline in the
unemployment rate starts to fade.
    The main theme of the Provincial Outlook continues to be the different
paths the Eastern and Western parts of the country are taking. Record-high
commodity prices and strong global demand for resources sustain unprecedented
prosperity in the Western provinces, while the strong Canadian dollar,
downturn in the U.S. economy and high energy prices continue to cause hardship
in key sectors in provinces east of Manitoba. Saskatchewan is projected to
lead all of the provinces in economic growth for both 2008 and 2009, followed
by Alberta, while Newfoundland and Labrador and Ontario are expected to lag
the group this year, but should show some improvement next year.

    The RBC Economics Provincial Outlook assesses the provinces according to
economic growth, employment growth, unemployment rates, personal income
growth, retail sales, housing starts, and the Consumer Price Index.
    According to the report (available online as of 8 a.m. E.D.T., at
www.rbc.com/economics/market/pdf/provfcst.pdf), provincial forecast details
are as follows:

    
                    Real GDP           Housing starts         Retail sales

                                          Thousands
                  07    08    09        07    08    09        07    08    09
                  --    --    --        --    --    --        --    --    --
    NFLD.        9.1   0.2   1.3       2.6   2.6   2.0       8.9   6.0   2.0
    P.E.I.       2.0   1.2   1.6       0.8   0.7   0.6       7.7   4.5   3.7
    N.S.         1.6   2.0   2.4       4.8   4.7   4.0       4.2   5.5   4.5
    N.B.         1.6   2.0   2.5       4.2   4.2   3.4       5.7   4.6   4.0
    QUE.         2.4   1.0   2.3      48.6  47.1  40.0       4.6   4.3   4.4
    ONT.         2.1   0.7   2.2      68.1  68.7  59.3       3.9   4.4   4.5
    MAN.         3.3   2.7   2.7       5.7   5.9   4.5       8.8   8.5   7.0
    SASK.        2.8   3.7   3.8       6.0   6.6   4.5      13.0  12.0  11.0
    ALTA.        3.3   3.1   3.0      48.3  38.3  35.1       9.3   4.5   7.0
    B.C.         3.1   2.2   2.9      39.2  37.2  30.5       6.7   4.5   7.5
    CANADA       2.7   1.4   2.5       228   216   184       5.8   5.2   5.6


                   Employment                CPI


                  07    08    09        07    08    09
                  --    --    --        --    --    --
    NFLD.        0.6   2.0   0.5       1.5   2.5   1.4
    P.E.I.       1.0   1.3   0.3       1.8   3.2   1.5
    N.S.         1.3   1.0   1.9       1.9   3.0   1.6
    N.B.         2.1   1.6   1.0       1.9   1.8   1.5
    QUE.         2.3   1.4   1.3       1.6   2.2   1.4
    ONT.         1.6   1.5   1.3       1.8   2.0   1.5
    MAN.         1.6   2.1   1.7       2.0   2.0   1.5
    SASK.        2.1   2.4   2.3       2.8   3.4   2.6
    ALTA.        4.7   3.0   2.1       5.0   3.3   2.5
    B.C.         3.2   2.6   2.5       1.8   2.0   1.5
    CANADA       2.3   1.9   1.6       2.1   2.3   1.6
    





For further information:

For further information: Craig Wright, RBC Economics, (416) 974-7457;
Robert Hogue, RBC Economics, (416) 974-6192; Jackie Braden, RBC Media
Relations, (416) 974-2124


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890