Central 1 Credit Union Forecasts B.C. Will Weather Global Economic Turmoil Well, Grow at a Moderate Pace
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 19, 2016) - British Columbia's economy will lead the country again this year and remain strong through 2019, says a new forecast by Central 1 Credit Union.
"B.C. will continue to benefit from low interest rates and a lower currency, despite challenges presented by a weak commodity sector," says Senior Economist Bryan Yu. "Lifted by household demand and housing investment, economic growth will ease slightly from 2015 but remain moderate at three per cent this year."
Yu expects the sharp decline in the Canadian dollar and improving U.S. growth will underpin increased export activity and boost tourism. The current market turmoil and lower loonie have trimmed growth projections for this year.
Yu forecasts economic growth will average above three per cent from 2017 onwards with steady consumer activity and higher business investment related to major project construction.
- There is little risk of a housing downturn.
- Commodity prices will remain low, hurting the resource sector.
- Unemployment rate will rise this year, then drop in coming years.
- A key assumption is that one large liquefied natural gas (LNG) terminal will be built. Without a terminal, growth will be slower and unemployment higher.
"We're seeing a split in the global economy with emerging nations, such as China, struggling, while Europe and North America grow," Yu says. "This divergence and low prices will affect B.C.'s commodity exports."
The province's population will grow over the next four years as more Canadians move to the province seeking work, offsetting modest international migration trends. The unemployment rate will rise to 6.3 per cent this year, but only because job opportunities will entice more people back into the labour force.
Read the full report BC Economic Outlook.
About Central 1
With offices in Vancouver, Mississauga and Toronto, Central 1 holds on balance sheet approximately $14.6 billion in assets. We provide wholesale financial products, trust services, payment processing solutions and direct banking services to more than 300 credit unions and institutional clients from coast to coast.
In addition, Central 1 is the primary liquidity manager, payments provider and trade association for our 40 member credit unions in B.C. and 77 Ontario member credit unions. Our members represent a consumer-oriented, full-service retail financial system that collectively serves 3.2 million members and holds more than $104.7 billion in assets. For more information, visit www.central1.com.
(January 19, 2016 - 9:01 AM EST)
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