Positive Economic Indicators
February 5, 2008
NEW 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)
CURRENT FIGURES
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)
Vancouver Named Global Commerce Centre
MasterCard Worldwide has listed Vancouver among its top 50 Worldwide Centers of Commerce – cities that drive global commerce. Vancouver also ranked number one as the easiest place in the world for doing business, followed by Toronto and Montreal. This top ranking was due to a strong national health care system, excellent infrastructure, low traffic, and easy access to public transportation.
(MasterCard Worldwide, Worldwide Centers of Commerce Index, June 2007)
Strong Economy Benefits B.C.’s Regions
The latest BC Check-Up, Regional Edition released by the Charted Accountants of British Columbia highlights positive economic activity in each region of the province. According to the report, the Vancouver Island/Coast region led the province in job creation with 19,500 new jobs in 2006 – a 5.6 per cent increase over 2005 and the largest annual increase in a decade. Since 2001, business incorporations in the Thompson-Okanagan region increased by 117.4 per cent and business bankruptcies declined by 37 per cent. For the fourth consecutive year, the Northeast region enjoyed the lowest unemployment rate in B.C. in 2006, primarily due to brisk activity in the mining and oil and gas sectors. Resurgence in B.C.’s mining sector benefited the Nechako region in 2006. The northwest saw approximately $128 million in mineral exploration expenditures last year – almost half of all exploration spending in British Columbia.
(Institute of Chartered Accountants of British Columbia, BC Check-Up, Regional Edition)
Standard & Poor’s Upgrades B.C.’s Credit Rating to AAA
British Columbia is a “job-creating machine,” according to the Conference Board of Canada’s latest Provincial Outlook report. B.C.’s economy is forecast to grow by 3.1 per cent in 2007 and 3.3 per cent in 2008. The board expects the construction sector will continue to be a “pillar of growth” over the next two to five years, and the mining industry will benefit from record exploration activity. The domestic side of the economy will perform well due to strong job creation and the provincial government’s decision to cut personal income taxes.
(Conference Board of Canada, Provincial Outlook, Spring 2007)
B.C.’s Mining Industry is Booming
PricewaterhouseCoopers’ annual mining survey revealed the highest level of earnings in the sector last year. In 2006, earnings soared to $2.35 billion, up 27.6 per cent from 2005, and the strongest showing in the 39-year history of the survey. These results are due to increased global demand and higher coal and metals prices; the survey also showed the annual number of people employed by the mining industry in B.C. increased to 7,345 in 2006, from 7,071 in 2005.
(PricewaterhouseCoopers, The Mining Industry in British Columbia – 2006)
Major Projects Inventory Reaches New Heights
British Columbia’s new Major Projects Inventory shows 804 major capital projects, worth an estimated $124.2 billion, were planned or underway between January and March 2007. Every region in the province experienced growth compared to the first quarter of 2006 when the inventory stood at 711 major capital projects worth an estimated $90.6 billion. This is the 15th straight quarter the inventory has grown.
(Ministry of Economic Development, May 15, 2007)
B.C.’s Economic Growth Solid in 2006
According to Statistics Canada, economic growth in British Columbia was 3.6 per cent in 2006 led by construction and wholesale-retail trade. This marks the fifth consecutive year that B.C. outpaced the national growth rate, which was 2.7 per cent last year. In addition, employment grew 3.1 per cent in B.C. – faster than the national average for the fourth year in a row. Sectors that added the most jobs in 2006 were construction, wholesale and retail trade, education and health care. Disposable income also increased strongly at 7.5 per cent, which led to a rise in consumer spending on goods and services.
(Statistics Canada, Provincial and Territorial Economic Accounts)
Unemployment Rate Drops to New 31-Year Record Low
The unemployment rate in British Columbia fell to 3.9 per cent in March, reaching a 31-year record low for the third straight month. British Columbia created 12,500 jobs in March, bringing B.C.’s employment rate to 63.8 per cent, the highest level in over three decades. Since December 2001, the economy has created 371,400 new jobs, the fastest growth rate among provinces.
(Statistics Canada, Labour Force Survey, March 2007)
Business Confidence is High in B.C.
The latest survey of business expectations from the Canadian Federation of Independent Business shows B.C. firms are the most optimistic in the country, ranking above the national level for the 15th consecutive quarter. Overall, 67 per cent of B.C. businesses are expecting a stronger performance over the next 12 months – exceeding the national level by 16 points. In addition, the survey showed that 34 per cent of firms in B.C. plan to hire more full-time staff in the next 12 months.
(Canadian Federation of Independent Business, Business Barometer, March 2007)
B.C.’s Economic Growth Remains Healthy
British Columbia’s economy is forecast to grow by a healthy 3.4 per cent in 2007 and 2008, according to the latest Provincial Outlook from RBC Financial Group. B.C.’s economic growth is mainly due to higher commodity prices, tight labour markets, a strong construction sector, and a major turnaround in provincial government finances.
(RBC Financial Group, Provincial Outlook, March 2007)
B.C.’s Economic Growth Continues in 2007
British Columbia will continue to be near the top of the economic pack in 2007, with growth expected at about 3.2 per cent, according to Scotiabank. Construction activity, led by the non-residential construction sector, will continue to play a prominent role in B.C.’s expansion this year. Scotiabank also notes that B.C.’s film industry – one of the largest in North America – will continue to prosper with an established workforce, great facilities, and tax incentives.
(Scotiabank, Provincial Trends, March 2007)
| B.C. Economic Growth Forecasts (updated January 2008 ) | ||||
Institution |
Year |
Growth Forecast (Real GDP) |
Year |
Growth Forecast (Real GDP) |
| Royal Bank (January 2008) |
2008 | 2.5% (5th among provinces) |
2009 | 3.0% (4th among provinces) |
| TD Bank (January 2008) |
2008 | 2.8% (2nd among provinces) |
2009 | 3.2% (1st among provinces) |
| Scotiabank Group (January 2008) |
2008 | 3.0% (3rd among provinces) |
2009 | 3.2% (2nd among provinces) |
| Economic Forecast Council (December 7, 2007) | 2008 | 2.9% | 2009 | 2.9% |
