Economic growth in British Columbia is forecast to remain above the long-term historical annual average through 2012, creating the best five-year outlook since 1985, Credit Union Central of British Columbia said Monday.
B.C.'s real gross domestic product is forecast to grow by an average of 3.6 per cent a year through 2012, up from 3.4 per cent over the past five years. This would be the strongest five-year performance since from 1985 to 1989.
Weakness in the United States housing market, and in credit derivative and secondary equity markets, will dampen the outlook and keep GDP growth in check through 2009. GDP growth is then expected to spike around the 2010 Winter Olympic Games, fall back the following year and surge again in 2012.
Close to half of forecast growth will come from retail and wholesale trade, finance, real estate, telecommunication and other services, the report said. Traditional mainstays such as pulp, paper and metal are forecast to contribute least to growth.
The labour market is forecast to remain tight, putting upward pressure on salaries and wages. Total personal income is expected to rise by an average of 6.5 per cent a year through 2012, up from 5.9 per cent over the past five years.