Economic Growth in Western Canada to Lead the Way
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According to the BMO Blue Book, Western Canada remains on pace to lead economic growth in the country. If the trends in real estate and consumer spending continue in Alberta and B.C., the combined growth is calculated to reach 2.3% for 2018.
British Columbia is on track for a fourth consecutive year of GDP growth exceeding three per cent. As the province’s cooling measures fade, the housing market has picked up. The standard prices were up 10.9 per cent year over year since September.
Low unemployment in B.C. indicates that the labour market is capable of supporting a higher cost of living more than anywhere else. B.C.’s employment growth is leading all provinces, according to BMO Capital Markets Senior Economist, Robert Kavcic. “The jobless rate is nearing a decade low at 5.1 per cent. That is drawing in increased migration from other Canadian provinces, adding a steady stream of international inflows of more than 50,000 in total in the 12 months through June.”
Heading into 2018, with a projected $246 million surplus this fiscal year, B.C.’s credit rating will be the strongest in the country. Unfortunately, this could all change if spending priorities shift. Mike Bonner, Senior Vice President and Regional Head, British Columbia & Yukon Division, BMO Bank of Montreal adds that “The B.C. economy continues to outpace provincial peers and reflects the optimism our customers have in local markets.”
