B.C. Economy to Boom Through 2010, Economist Says
Dismal decade Over: It’s all good news Wright to tell board of trade
The B.C. economy is firing on all cylinders and shouls run full speed ahead into the 2010 Olympics, says RBC Financial Group chief economist Craig Wright.
After 10 years of economic difficulty, B.C. prospects couldn’t be brighter - construction projects for the Vancouver-Whistler Olympics are about to start, global commodity demand is boosting Canadian industries and Pacific Rim trade is driving further growth.
“The dismal decade has given way to the dynamic decade,” said Wright, who will address the Vancouver Board of Trade tomorrow. “Its all good news. You’re looking at a continued buoyant B.C. economy and that’s even before you get into the sizeable lift from the Olympics.”
Last year, B.C.’s economy led the country in growth at 3.9 per cent. Wrigth predicted a Gross Domestic Product of 3.7 per cent this year, likely behind Alberta, and 3.8 per cent next year.
Even concerns about skilled worker shortages and the skyrocketing cost of scarce construction materials are just “growing pains” that industries will adjust to, Wright said in an interview with The Rpovince yesterday.
He added that the positive effect of Olympic construction on the economy won’t be fully felt until 2007.
Some analysts fear that B.C.’s economy is heading for a “boombust” scenario because so many major construction projects are set to end before 2010, but Wright declined to speculate.
“For a while, the Olympics were the only thing that was going to drive growth, then we saw this huge spike in global commodity prices and trade flows. Many factors can affect B.C. in the future,” he said.
The Bank of Canada is expected to raise the interest rates a quarter point to 3.0 per cent today and Wrigth says he expects several more hikes to come.
“We’ll see a measured adjustment to more normal rates,” he said.
Jim Jamieson - Business Reporter