VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 6, 2012) - B.C.'s economic picture will improve slightly this year and next, before shifting to above average growth rates in 2014-2016, says a new forecast by Central 1 Credit Union.
According to Central 1's chief economist Helmut Pastrick, the provincial economy will grow about 1.7 per cent this year, down from 2.6 per cent in 2011.
"B.C. will grow about 2.2 per cent in 2013, then gain momentum to 3.5 per cent in 2016 as the U.S. starts to recover," Pastrick said.
"The biggest risk to this continuing recovery is another recession, but I think that is a low probability," Pastrick said. "I also think we will continue to muddle through the euro crisis with a series of patchwork measures."
- Modest overall economic growth through 2013, averaging 2% annually
- Investment and trade sectors lift growth to 3% inflation-adjusted and 6% in current dollars from 2014 to 2016
- Consumer spending and housing sector to expand at moderate pace
- Unemployment rate declines amid improving but modest job and labour force growth
- Personal income grows with labour market improvements
- Interest rates start to rise later in the forecast period
- Construction and wood products manufacturing to lead growth in all industries
- Little or no growth in government-related sectors, except for health services
- Slow population growth restrains consumer and residential spending
The full report, B.C. Economic Forecast 2012-2016, is available at the following link: http://www.central1.com/publications/economics/pdf/ea/ea%202012_04.pdf.
About Central 1
Central 1 is the central financial facility and trade association for the B.C. and Ontario credit union systems. Central 1 represents a consumer-oriented, full-service retail financial system that serves three million members and holds $83 billion in assets and is owned primarily by its member credit unions, 45 in B.C. and 104 in Ontario.
With offices in Vancouver, Mississauga, and Toronto, Central 1 provides a wide range of services such as liquidity management, direct banking, and flexible payment service solutions. For more information, visit www.central1.com.