With a mission to inform, empower, celebrate and advocate for British Columbia's current and aspiring business leaders, BCBusiness go behind the headlines and bring readers face to face with the key issues and people driving business in B.C.
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12 INVEST in BC 2 0 2 0 Official Publication of the BC Economic Development Association. In special partnership with BCBusiness. SOURCE: CENTRAL 1 CREDIT UNION PROVINCIAL FORECAST REAL GDP GROWTH EMPLOYMENT GROWTH POPULATION GROWTH A t a time when much of the world is in turmoil, the first thing to come to mind when people think of British Columbia might be quality of life: it's a place for people who love nature, appreciate cultural diversity and value social stability. However, there's another reason to be attracted to Canada's West Coast: in terms of economic growth, B.C. is in a position of strength. In fact, the province is poised to be among the leaders across the country over the next two years, according to the Conference Board of Canada. B.C.'s real gross domestic product (GDP) is expected to rise 2.6 percent in 2020. A key contributor to the sustained growth is the province's business investment outlook. "Construction of the LNG Canada liquefied natural gas terminal and pipeline, and the beginning of the Trans Mountain Pipeline expansion project, will keep the province's economy humming along over the next two years," the Conference Board of Canada noted in a recent report. While these two giant industrial projects are certainly significant drivers, there's much more behind B.C.'s healthy economic forecast. Other projects on the go include BC Hydro's Site C dam, school construction and various public works projects that will further fuel an upward cycle in infrastructure spending. The labour market, meanwhile, is a key contributing factor, with employment growth at about 2.6 percent for 2019—one of the strongest rates in the country, according to Bryan Yu, deputy chief economist at Central 1 Credit Union. That compares to a national growth rate of about 1.6 percent. "The overall employment numbers are still fairly solid, despite some weakness in the later parts of 2019," Yu says. "When we look at 2020, we're still seeing positive growth emerging." B.C. continues to have the lowest unemployment rate in the country, averaging 4.8 percent in 2019. Employment growth is forecast to exceed 2.5 percent, with both the household Labour Force Survey and employer-based Survey of Employment, Payroll and Hours showing significant expansion. Certain parts of the service side of the economy stand out, particularly technology, professional services and tourism. Technology is burgeoning, with companies like Amazon expanding their operations, while homegrown organizations are upsizing, too. Relic Entertainment, an electronic gaming company, P R O V I N C I A L O V E R V I E W 2020 2021 2022 2.8% 1.9% 2.0% 1.3% 1.2% 1.1% 2020 2021 2022 2020 2021 2022 1.5% 1.4% 1.3%