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

Langley Christmas Fun: Nov. 15, 2018 edition

Send details to LangleyAdvance.com/add-event or news@langleyadvance.com, subject “Christmas fun.”

Hey kids, we want to see your letters to Santa

Families and teachers can send in kids’ letters to be included in our special holiday publication.

Aldergrove car-jacking suspect arrested

Man had ordered 70-year-old pastor’s wife to get out of their truck

Crash blocks half of 200th Street in Langley City

Police and firefighters were on scene Thursday.

LETTER: Canada should not be selling weapons abroad

A Langley man is critical of Canada for selling arms that are being used to kill civilians.

Metro Vancouver mayors cancel Surrey LRT in favour of SkyTrain

Surrey mayor claims he can extend Skytrain for the $1.65 billion already committed to light rail

Hunter who saved B.C. man pinned inside smashed truck says ‘God was sending me to him’

Sayward man describes chance discovery of Duncan Moffat, 23, in northern Vancouver Island woods

Road-weary Canucks thumped 6-2 by Wild

Vancouver hosts the Montreal Canadiens on Saturday

Toronto private school didn’t report alleged sexual assault to police

Police say a sexual assault at an all-boys Catholic institution was not reported to them

China says butt out; Canada calls for release of “arbitrarily” detained Muslims

A Chinese foreign ministry spokeswoman accused Canada’s envoy of going beyond their diplomatic roles

Dead Saskatoon tattoo artist’s skin removed and preserved

The skin was removed in honour of the well known artist’s work

Lower Mainland couple missing in Thompson-Okanagan area

Barriere RCMP received a missing persons report for two senior overdue travellers

Vancouver Warriors cancel first 2 weeks of season as labour dispute continues

The announcement means games scheduled for Dec. 1 and Dec. 8 will no longer be played

B.C. Realtor suspended after helping intern forge note about sick grandma

Vancouver real estate agent Jaideep Singh Puri has to pay fine, take ethics course

Most Read