Positive Economic Indicators
June 3, 2008
NEW FIGURES
B.C. Leads Canada in Residential Investment
British Columbia had the largest increase in residential construction investment in Canada between the first quarter of 2007 and the first quarter of 2008. According to the latest figures from Statistics Canada, residential investment in B.C. rose $697 million to nearly $4 billion – an increase of 21.2 per cent.
(Statistics Canada, Residential Construction Investment, June 2008)
Major Projects Inventory Continues Record Pace
In the first quarter of 2008, there were 858 major capital projects, worth an estimated $163.2 billion, planned or underway in B.C. This is an increase of seven per cent in the number of major projects and an increase of 31 per cent in the estimated value from the same period in 2007. This is the 19th consecutive quarter the inventory has grown.
(Ministry of Economic Development, Major Projects Inventory March Edition)
Strength of B.C.’s Job Market Continues
British Columbia has experienced above-average employment growth for six consecutive years – a trend that is forecast to remain through 2009, according to the Credit Union Central of BC. Employment is expected to grow in almost all major industries during this year or next. The CUCBC also notes that B.C.’s unemployment rate has declined for five straight years and is at a 43-year low due to robust economic growth and a more mature work force.
(Credit Union Central of BC, Economic Analysis of British Columbia, May 2008)
Solid Employment Growth in B.C.
British Columbia created 77,200 jobs between April 2007 and April 2008 – an increase of 3.4 per cent. Over the past 12 months, B.C.'s employment growth rate of 3.4 per cent leads the nation and exceeds the national average of 2.1 per cent. Since December 2001, B.C.’s economy has generated 430,300 new jobs.
(Statistics Canada, Labour Force Survey, April 2008)
B.C. Leads Nation in Interprovincial Migration
According to figures from Statistics Canada, British Columbia led all provinces in interprovincial migration in 2007. B.C. attracted nearly 13,400 people last year, a 31 per cent increase over 2006. This marks the first time in over a decade that any province other than Alberta has led the country in interprovincial migration.
(Statistics Canada, Ministry of Economic Development, March/April 2008)
CURRENT FIGURES
Mining Exploration Investment Surges
Mineral exploration activity in B.C. reached an all-time high of nearly $416 million for 2007. This investment marks an increase of 57 per cent over 2006 levels and 1,300 per cent over 2001. Overall, there were 472 exploration stage projects across British Columbia in 2007.
(Ministry of Energy, Mines and Petroleum Resources, British Columbia Mining and Exploration Overview 2007)
Another Year of Strong Employment Growth
Employment growth in British Columbia was 3.2 per cent for 2007, which was second highest among provinces and exceeded the national average of 2.3 per cent. In total, 70,800 new jobs were created in B.C. last year, up from 65,000 jobs in 2006. B.C.’s annual average unemployment rate dropped to 4.2 per cent in 2007, from 4.8 per cent in 2006.
(Statistics Canada, Labour Force Survey, December 2007)
Oil and Gas Rights Sales Shatter Record
The sale of oil and gas rights in British Columbia reached over $1 billion in 2007, shattering the previous record of $647 million set in 2003. In total, 595,559 hectares of land were sold at a record average price of $1,758 per hectare – a 90 per cent increase over the previous high of $922 per hectare in 2005.
(Ministry of Energy and Mines, Oil and Gas Sales Results, December 2007)
Conference Board Forecasts Solid Economic Growth for B.C.
In its latest Provincial Outlook report, the Conference Board of Canada expects strong economic growth in British Columbia at 2.9 per cent in 2007 and 3.0 per cent in 2008. The Board anticipates ongoing construction for the 2010 Olympics and public infrastructure projects will help boost non-residential investment by 9.0 per cent in 2008. Consumer spending is also expected to remain strong with retail sales forecast at 6.8 per cent this year.
(Conference Board of Canada, Provincial Outlook, Autumn 2007)
Major Projects Inventory Reaches All-Time High
Between July and September 2007, there were 843 major capital projects planned or underway in British Columbia, worth an estimated $134.5 billion. This is an increase of 7.0 per cent in the number of major projects, and an increase of 22 per cent in estimated value from the same period in 2006. This is the 17th consecutive quarter the inventory has grown.
(Ministry of Economic Development, Major Projects Inventory September Edition)
B.C. Leads Small Business Growth in Canada
Between 2001 and 2006, British Columbia’s small business growth was 11 per cent – more than triple the national average of 3.6 per cent. This increase in the number of small businesses was strongest in the Northeast region at 6.3 per cent, followed by the Kootenay region at 3.7 per cent. Across B.C., small business employment rose 1.5 per cent in 2006, which was the fifth straight year of growth. Small businesses account for 98 per cent of all businesses in British Columbia.
(BC Stats and Ministry of Small Business and Revenue, Small Business Profile 2007)
Construction Intentions Remain High in B.C.
The latest figures from Statistics Canada show that the value of building permits issued in British Columbia is up 22 per cent to approximately $6.6 billion this year, compared to $5.4 billion for the first six months of 2006. For June 2007, the value of permits in B.C.’s non-residential construction sector reached nearly $498 million – the second highest level on record, according to the report. In addition, the total value of permits for 2007 is up 64 per cent in Victoria and 57 per cent in Kelowna, compared to the same time last year.
(Statistics Canada, Building permits, August 3, 2007)
Solid Economic Growth Expected in B.C.
According to a recent report from Scotiabank, British Columbia is expected to experience economic growth averaging 3.3 per cent in both 2007 and 2008. For this year and next year, the report anticipates solid retail sales in B.C. and higher household incomes due to employment growth and personal income tax cuts. Non-residential construction continues to thrive and mining exploration in the province remains robust.
(Scotiabank Group, Provincial Trends, July 2007)
Construction Investment Continues to Rise
For the 10th consecutive quarter, investment in non-residential construction in B.C. continued to increase. In the second quarter of 2007, investment rose by 4.1 per cent (seasonally adjusted) with spending on industrial buildings leading the way, followed by the commercial sector.
(Statistics Canada and BC Stats, July 2007)
Strong Q2 Results
The Business Council of British Columbia's Economic Index showed a healthy pace of economic growth in B.C. for the second quarter of 2007, with a gain of 1.3 per cent. The Index showed strongest growth in retail sales, along with employment growth and non-residential building activity. The Council notes that for the first time since the creation of the Index in 2002, all seven indicators that make up the Index contributed to B.C.'s economic performance last quarter.
(Business Council of British Columbia, B.C. Economic Index, July 2007)
| B.C. Economic Growth Forecasts (updated May 2008 ) | ||||
Institution |
Year |
Growth Forecast (Real GDP) |
Year |
Growth Forecast (Real GDP) |
| Royal Bank (April 2008) |
2008 | 2.3% (6th among provinces) |
2009 | 2.8% (4th among provinces) |
| TD Bank (April 2008) |
2008 | 2.2% (2nd among provinces) |
2009 | 2.7% (3rd among provinces) |
| Scotiabank Group (May 2008) |
2008 | 2.6% (2nd among provinces) |
2009 | 2.8% (2nd among provinces) |
| Economic Forecast Council (December 7, 2007) | 2008 | 2.9% | 2009 | 2.9% |
