December 19 , 2006

NEW FIGURES

Building Boom Accelerates
Non-residential construction in B.C. will to continue to rise sharply in the coming years, according to the Credit Union Central of British Columbia. Annual non-residential construction spending is forecast to increase from an estimated $11.4 billion in 2005 to $17.3 billion in 2008. This spending will be led by transportation and power infrastructure projects, together with commercial and industrial buildings, and Olympic venues.
(Credit Union Central of B.C., December 11, 2006)

Hiring on the Rise in Early 2007
Finding a job in Vancouver is expected to become even easier in the new year as more businesses search for additional employees. According to a recent survey by Manpower Canada, 33 per cent of employers in Vancouver are planning to hire in the first quarter of 2007. In Western Canada, some of the key sectors that are planning to hire include mining, education, services, manufacturing, and construction.
(Manpower Employment Outlook Survey, December 12, 2006)

B.C. Economy Remains Strong but Expected to Ease in 2007
The independent Economic Forecast Council improved their 2006 and 2007 average growth forecasts for British Columbia. The council expects B.C.’s real gross domestic product to be 4.0 per cent this year and 3.4 per cent in 2007. Key economic drivers include strong employment gains, healthy consumer spending, steady housing activity, and continued strength in non-residential construction.
(Ministry of Finance, Economic Forecast Council)

Robust Economy to Continue
The Conference Board of Canada forecasts British Columbia’s economy will “remain robust” over the next two years, predicting economic growth of 3.9 per cent this year and 3.2 per cent in 2007. B.C. can expect strong performances in the construction, manufacturing and mining sectors, as well as residential and non-residential investment.
(Conference Board of Canada, Provincial Outlook, Autumn 2006)

CURRENT FIGURES

Inventory of Major B.C. Projects Continues to Climb
The number of large-scale construction projects in British Columbia continues to set new records, according to the Province’s Major Projects Inventory. Between July and September 2006, a record 783 major capital projects, worth an estimated $110 billion, were planned or underway across British Columbia.
(Major Projects Inventory, 2006)

B.C. Retailers Expect a Merry Christmas
British Columbia retailers are optimistic about the upcoming Christmas shopping season, according to a survey by Retail B.C. and Zata. British Columbia’s retail industry has been generating record sales this year and the survey shows no slow down in sight. Bolstered by a strong provincial economy, 91 per cent of respondents expect retail sales to remain the same or increase this holiday season and remain strong well into 2007.
(Retail BC and Zata, November 2006)

Job Growth Continues
British Columbia’s economy created 13,300 new jobs in October. Over the past year, the economy has created 65,300 more jobs, virtually all full time positions. Since December 2001, British Columbia’s economy has generated 320,000 new jobs, the best job creation record in Canada. British Columbia’s unemployment rate fell to 4.6 per cent in October, down from 4.8 per cent in September..
(Statistics Canada Labour October Force Survey 2006)

CMHC Predicts Ongoing Strength in B.C. Housing Sector
British Columbia’s housing sector will remain strong in 2007, according to the Canada Mortgage and Housing Corporation (CMHC). The low inflation and interest rate environment, gains in employment and incomes, and continued above average economic growth bode well for British Columbia’s housing sector. The market outlook for 2007 calls for continued high levels of resale activity and new home construction.
(CMHC, November 2006)

B.C. Economy to Remain Firm
British Columbia’s economy will remain firm despite growing concerns about weaker commodity prices and a softening U.S. economy, according to a recent forecast from RBC Financial Group. British Columbia’s economy is forecast to grow 4.8 per cent this year and 3.7 per cent in 2007. The report cites five factors that provide a firm backdrop for the Province’s economy: the Vancouver Winter Olympic Games, natural gas exploration and development, booming port activity, a small but thriving hi-tech industry, and sharp improvements to the provincial government’s finances.
(RBC Financial Group, Provincial Outlook, October 2006)

B.C. Businesses Most Optimistic
A ScotiaBank survey reveals small-business owners in British Columbia are the most optimistic in Canada. In B.C., 38 per cent of respondents believe economic conditions will improve over the next year, compared to 28 per cent nationally.
(Scotiabank Survey, October 11, 2006)

Business Bankruptcies at 25-Year Low
The bankruptcy rate for British Columbia businesses has fallen to its lowest point in 25 years according to Statistics Canada. In 2005, British Columbia’s bankruptcy rate fell to 4.7 per 1000 businesses, a marked decrease from 7.2 per 1000 recorded in 1999. In addition, British Columbia continues to experience the lowest rate of business failures across all regions of Canada.
(Statistics Canada, October 2006)

Business Confidence Remains Near Record High
The latest quarterly survey from the Canadian Federation of Independent Businesses reveals British Columbia’s business confidence remains near a historical high. Carrying on a two-year trend, small and medium-sized businesses in B.C. and Alberta lead their eastern counterparts in confidence by a sizeable margin.
(CFIB Business Outlook Survey, September 27, 2006)

Moody’s Raises B.C.’s Credit Rating to AAA for the First Time in Over 20 Years
Moody’s Investors Services has improved British Columbia’s credit rating to AAA, the highest possible rating, citing “a well-structured fiscal framework, leading to a reduced debt burden” and the expectation of further improvements in debt ratios over the medium term. This is the second upgrade from Moody’s in less than two years. Among Canada’s senior governments, only B.C., Alberta and the Government of Canada currently hold AAA ratings. British Columbia has not held a AAA rating from Moody’s since July 1983.
(Moody’s Investors Services, October 2006)

B.C.’s Low Unemployment Rate Remains at 30 Year Low
Labour Force Survey statistics for September confirm B.C.’s unemployment rate remained unchanged at 4.8 per cent. B.C.’s economy created 7,300 jobs in September. The number of full-time jobs rose by 10,600 while the number of part-time jobs fell by 3,300. Since December 2001, B.C.'s economy has generated 306,700 new jobs, an increase of 16.2 per cent – more than any other province.
(Statistics Canada September Labour Force Survey 2006)

B.C. Housing Market Enters Sixth Consecutive Year of Growth
In 2006 new home construction in British Columbia entered its sixth consecutive year of growth – the most consecutive years of growth on record. According to the Canada Mortgage and Housing Corporation, B.C.’s healthy economy, strong labour market, confident consumers and relatively low mortgage rates will result in 37,000 housing starts this year.
(Canadian Mortgage and Housing Corporation, August 14, 2006)

Robust Growth Seen for B.C. Economy
British Columbia’s economy will continue to see robust growth until at least 2010, according to the Credit Union Central of B.C. Low financing costs, higher income growth, and rising population growth will bolster consumer spending and housing market activity. Real GDP is forecast to grow slightly above 4 per cent per year between 2006 and 2010.
(Credit Union Central of B.C., August 4, 2006)

B.C. Major Projects List Surpasses $100 Billion Mark
According to the Major Projects Inventory, June 2006 edition, a record 769 major capital projects, worth nearly $101.9 billion, were planned or under construction in B.C. between April and June 2006. This is an eight per cent increase in the number of major projects reported in the inventory since the last publication in March and an increase of approximately 23 per cent in the number of projects reported in the inventory from one year ago.
(Ministry of Economic Development, August 21, 2006)

Ongoing Economic Expansion Boosting Incomes in B.C.
B.C.’s multi-year economic upswing is translating into income gains for British Columbians; 2005 brought a 2.5 per cent increase in average real personal disposable income, according to the Business Council of B.C. This represents one of the biggest jumps in disposable income in two decades and is the first time British Columbians have seen per capita incomes rise more quickly than the national average in 15 years. The Council predicts B.C.’s current economic revival will generate further per capita income growth.
(Business Council of B.C. Economic Snapshot, June 2006)

Northern B.C. Heading for Higher Growth
Rising investments in natural gas, mining, transportation, housing and non-residential construction will lead to stronger growth in northern British Columbia, according to Credit Union Central of B.C. Employment is forecast to increase by about 2 per cent per year through 2008. The forecast predicts job growth in construction, healthcare, professional, technical, transportation, and storage services.
(Credit Union Central of B.C., July 6, 2006)

Average Weekly Wages Rise in British Columbia
Current labour market concerns are not yet seriously hindering growth, according to BMO Capital Markets. They predict solid GDP growth of around 3.5 per cent over the next two years. B.C. has led the country in employment growth for the past two years, resulting in the highest average weekly earnings increase in the country. B.C.’s fiscal house is in “tip-top shape” and 95 per cent of B.C. firms expect production prospects to be the same or better than last year.
(BMO Capital Markets Provincial Monitor, 2006 Q2)

Unemployment Rate Falls to Record 30 Year Low
British Columbia’s unemployment rate fell to a new 30-year low of 4.3 per cent in June. Year-to-date, the number of jobs for young people increased by 9.4 per cent and jobs for women increased 3.8 per cent compared to the same period last year. B.C. has created almost 300,000 new jobs since December 2001.
(Statistics Canada, Labour Force Survey, June 2006)

B.C.’s Retail Sales Heat Up in April
British Columbia’s strong economic fundamentals continue to boost consumer confidence and drive robust retail sales in April 2006. Statistics Canada found that April retail sales reached 4.4 billion dollars, a jump of 6.9 per cent compared to April 2005. B.C. posted the third highest retail sales increase in the country, after Alberta and Saskatchewan. Retail B.C. credits the positive growth to stronger employment opportunities, low unemployment, and low interest rates.
(Retail B.C., June 21, 2006)

Strong Job Growth and Business Climate in B.C.
British Columbia’s economy is booming and business investment is on the rise, according to the Institute of Chartered Accountants. A review of B.C. development regions found this is “one of the strongest periods of economic growth [chartered accountants] have seen, and optimism throughout the business community continues to grow.” In 2005, all the development regions marked their third or fourth year successive of declining unemployment. Business incorporations grew by at least 20 per cent in seven out of the eight development regions. According to the Institute, all the regions are benefiting from development and construction, along with strong national and international markets for B.C. products.
(Institute of Chartered Accountants of B.C., B.C. Check-Up, June 9, 2006)

West Coast Booms, Says Statistics Canada
In a recent report, Statistics Canada examined British Columbia’s economy over the past fifteen years – from the “lost decade” of the 1990’s, to the recent “rebound” of the past five years.

After leading Canada’s economic growth from 1984 to 1990, B.C. fell behind in the 1990’s. This was reflected in real GDP growth of only 2.9 per cent per year from 1990 to 2001, down over a full point from the previous period.

Since 2001, real GDP growth in B.C. has averaged 3.4 per cent. By 2004 and 2005, demand across all sectors was rising in unison; consumer spending posted its best increases in 10 years; housing continued to grow at a double-digit rate. Business investment accelerated; while exports snapped out of a 3-year slump with a 16 per cent gain in earnings 2004 and 2005. Employment growth picked up after 2001, especially in the last two years. While jobs outside Vancouver fell between 1996 and 2001, they have risen 10 per cent since then, leading B.C.’s revival.

The report notes that B.C. has yet to experience the bulk of expected benefits of the Olympics and anticipates that Olympic-associated construction will assure strong investment demand in the future.
(Statistics Canada, Canadian Economic Observer, May 2006)

British Columbians See Positive Weekly Wage Growth
With jobs growing at double the rate of the labour force, as well as strong expansion in construction, investment, and manufacturing, B.C. remains near the top of the national economic growth pack. RBC Financial Group notes how these factors are driving growth in average weekly earnings, which continue to increase at a rate of more than 4 per cent since July 2005.
(RBC Financial Group, Provincial Current Trends, May 2006)

Housing Market Expansion to Continue and Broaden
British Columbia’s housing market will continue on its upswing through 2007 and broaden across the regions, according to Credit Union Central of B.C. Markets outside Victoria and Vancouver will see stronger gains due to comparatively lower prices and positive economic conditions. New jobs, income growth, and rising in-migration will contribute to stronger housing demand over the two-year forecast.
(Credit Union Central of B.C., May 31, 2006)

Investment in B.C. Surges
The Conference Board of Canada forecasts strong economic growth in 2006 and 2007. The province can expect to see strong gains in mining, manufacturing, retail sales, and non-residential investment, as well as gains in the “sizzling-hot” construction sector. The Conference Board predicts that British Columbians will see an increase in personal disposable income of 7.3 per cent in 2006.
(Conference Board of Canada, Provincial Outlook, Spring 2006)

Housing Starts to Increase
Fuelled by a growing economy, employment gains, and positive net interprovincial and international migration, British Columbia’s housing expansion will extend into 2006, according to a new forecast by the Canadian Mortgage and Housing Corporation. Housing starts will increase to 37,000 units in 2006 and ease slightly to 34,900 units in 2007.
(Canadian Mortgage and Housing Corporation, May 10, 2006)

Kootenay Economy to Create More Jobs
A recent report from the Credit Union Central of B.C. predicts strong employment growth for the Kootenay Region over the next two years. According to the report, the number of jobs increased by approximately 3 per cent in 2005, and is forecast to rise by 2 per cent in 2006 and 2007. The outlook sees employment growth in retail, healthcare, accommodation, construction, and technical services.
(Credit Union Central of B.C., April 19, 2006)

B.C. Continues to Outperform
The Bank of Montreal predicts B.C. will continue to outperform the Canadian average across a range of economic indicators. The bank expects B.C. to exceed the national average in real GDP growth, employment growth, and retail sales. Additionally, B.C.’s unemployment rate is expected to remain well below the national average.
(BMO Provincial Outlook, March 2006)

Businesses Search for More Workers
A survey by the Canadian Federation of Independent Business found that employers in British Columbia have jobs to spare, as they estimate 23,000 positions in B.C. are currently vacant. The report notes that vacancies are particularly high in Western Canada and no region or industry is free from the effects of high vacancies. The CFIB believes that government must ensure regulations, taxes, and social supports continue to promote a healthy and growing labour market.
(CFIB Research, “Help Wanted”, April 2006)

Film and Television Production Soar in 2005
Film and television production in British Columbia increased more than 50 per cent last year compared to 2004. More than 200 productions were completed in 2005, contributing $1.2 billion to the provincial economy. British Columbia is the third-largest film and television production centre in North America, behind Los Angeles and New York.
(Ministry of Tourism, Sport and the Arts, March 2006)

Full Time Employment Grows as Economy Adds More Jobs
British Columbia’s economy generated 16,300 full-time positions in April. The number of part-time jobs declined by 12,400, for a net increase of 3,800 last month. Since December 2001, more than 298, 000 new jobs have been created, 90 per cent of which are full-time.
(Statistics Canada, May 5, 2006)

100 per cent of Agreements Negotiated Before Deadline
The province successfully negotiated 100 per cent of the public sector labour agreements that were set to expire on or before March 31st. All 55 agreements are four years or longer in duration, cover over 230,000 public sector workers, and help ensure fiscal stability and certainty for British Columbia.
(Ministry of Finance, April 2006)

Standard & Poor’s Improves B.C.’s Credit Rating
Standard & Poor’s boosted British Columbia’s credit rating to AA+ from AA, recognizing the province’s strong fiscal management, low debt, and robust economy. This is the second time in 18 months that S&P raised B.C.’s rating. The upgrade reflects B.C.’s low and declining net taxpayer-supported debt burden, larger-than-expected budget surpluses, and the robust performance of B.C.’s economy in 2005, despite a number of potential challenges.
(Standard & Poors, April 4, 2006)

Retail Sales Soar Outside Greater Vancouver
Strong retail sales in 2005, coupled with continued economic strength will result in continued retail growth in the years ahead, according to Credit Union Central of B.C. In 2005, retail sales outside Greater Vancouver accounted for the majority of sales growth in the province, with an increase of 9.4 per cent over 2004. The Credit Union forecasts provincewide retail sales growth of 7 per cent per year through 2007.
(Credit Union Central of B.C., February 24, 2006)

Capital Investment Continues to Grow
Last year, capital investment in British Columbia grew by 8.7 per cent, the seventh consecutive year total investment spending increased. With expected growth of 6.5 per cent in 2006, the Business Council of B.C. expects investment spending to play a significant role in the province’s growing economy. The council notes that with predicted growth of 7.2 per cent, non-residential investment will continue to be a prime source of capital investment.
(Business Council of B.C., February 2006)

Jobs to Keep Surging in Years Ahead
Credit Union Central of B.C. forecasts total employment in B.C. will grow by 62,000 jobs in 2006 and another 59,000 in 2007. The unemployment rate is forecast to continue declining. The Credit Union anticipates the provincial unemployment rate will fall to 5.0 per cent in 2006 and 4.4 per cent in 2007.
(Credit Union Central of B.C., February, 2006)

B.C. Economy to Rank Among the Best
In a recent update, RBC Financial Group reaffirmed its confidence in British Columbia’s economy. With real GDP growth of 4.0 per forecast for 2006, B.C. will continue to have one of the best economies in the country. RBC forecasts improved retail sales, higher disposable incomes, and lower unemployment rates.
(RBC Financial Group, Provincial Outlook, January 2006)

Businesses Confident in B.C. Economy
According to a Business in Vancouver survey, business leaders are confident that 2006 will be marked by a stronger economy across all regions of the province. Despite concerns of labour shortages, 85 per cent of survey respondents believe economic activity will increase this year, up from 75 per cent last year. Additionally, 57 per cent of respondents report they are likely to hire more staff.
(Business in Vancouver 2006 Business Confidence Survey, January 17, 2006)

Mining Industry Sees Rapid Growth in 2005
All regions of British Columbia saw increased mining activity in 2005, as the value of mineral production increased to $5 billion, up from $4.5 billion in 2004. Mineral exploration expenditures increased by 40 per cent last year and there are now 23 new sites in various stages of development -- strong indicators that B.C. is set to benefit from a period of sustained strength in the mining sector.
(Mining Association of BC, January 2006)

B.C. Led the Nation in Job Growth in 2005
British Columbia posted Canada’s best job growth in 2005. Compared to a year ago, the number of jobs increased by 3.8 per cent, more than double the national rate of 1.4 per cent and well above the 1.8 per cent increase seen in Alberta.
(Statistics Canada, January 2006)

More Full Time Jobs Created in 2005
The number of British Columbians working full time jobs increased by 4.1 per cent in 2005, while part time employment grew by 2.9 per cent. Of the 275,000 new jobs created since December 2001, more than 90 per cent, or 253,000, were full time positions.
(Statistics Canada, January 2006)