B.C.’s Economy Continues to Grow
BMO experts forecasting a four-per-cent increase for 2006
The seemingly unstoppable B.C. construction boom, fuelled in part by preparations for the 2010 Olympics, will lead the province to economic growth of four per cent in 2006, up from a robust 3.5 per cent in 2005, the BMO financial group says.
BMO’s forecast for B.C. overtakes even Scotiabanks projection earlier this month of 3.8 per cent growth for the province, and is way ahead of Bank of Canada’s prediction of 3.5 per cent.
The torrid pace of residential construction in B.C. is expected to decline later in 2006 as interest rates climb and pent-up demand is filled, BMO said in a release Thursday, but major non-residential projects are expected to fill that gap.
Megaprojects - including the building of 2010 Olympic Games venues, athletes’ villages and other facilities, the expansion at the Port of Vancouver Airport, the Richmond-Air-Port-Vancouver rapid transit line, the Coquitlam light rail service, the upgrade of the Sea to Sky Highway now under construction, and the Golden Ears Bridge linking Maple Ridge to Surrey/Langley - are expected to add up to almost $6billion in construction spending by the time the projects are completed.
Newfoundland and Labrador will lead all other provincial economies in growth in the coming year, BMO said, while Alberta and B.C. will continue to exceed the national growth rate.