With its latest economic perspective, Central 1 also predicts a shift in consumer and tourist services, as well as increased business investment.
B.C. it may be cool, but there is good reason to be optimistic about the province’s economy. Central 1 Economics is doing just that in its new economic vision for 2022-24.
“As we enter the third year of the epidemic, British Columbia remains economically stable, as it faces many challenges better than its provincial counterparts,” the report said. “We plan to grow the economy by 5 percent by 2021 after securing a contract by 3.8% by 2020, while job growth has reached 6.6%. Momentum enters 2022 with a forecast growth of 3.9 percent with continuous exchanges for service-focused needs from domestic buyers and visitors, as well as high business investment. Housing is projected to grow exponentially over the past year. ”
Highlights of the latest Central 1 view:
• After an increase of 3.9 percent this year, the provincial economy will slow down by 2023 and 2024.
• High commodity prices and inflation continue to increase the volume of domestic production, but the trend is declining
• Economic growth revolves around service utilization while investment remains under 2022-24 support.
• Housing market contribution to B.C. the economy is deteriorating after blockbuster 2021
• Unemployment will drop to less than 5 percent, and population growth will provide a pillow
• Risks continue, given the variability of COVID-19 and the increase in central bank prices
Medium 1
Another sign of the province’s economic growth is the sixth consecutive monthly increase in January jobs, as opposed to job losses elsewhere in the country, notes Central 1.
“Although part-time employment has led to growth, in general, B.C. employment increased by 2.4 percent above pre-epidemic levels and is at an all-time high. This has exacerbated the labor market deficit, and the province is likely to have achieved full-time employment at a rate of 5.1 percent, and is close to a full recovery of both employment and participation rates. ”
As the forecast shows, sectors connected with the information economy and the housing market are thriving. For example, employment in the technology and professional services sector grew by 10 percent during the epidemic.
“The labor market indicators are in line with other key economic indicators, although recovery continues to be unequal,” said Central 1. ” . ”
Since the epidemic began, B.C. Domestic prices have risen by about 40 percent, notes Central 1. New construction costs, renovations and transaction costs have boosted the economy as housing demand rises in smaller urban areas.
However, Central 1 predicts that the residence will lose smoke later this year. “While housing construction is still high, new construction is underway. Affordable erosion and high interest rates are expected to reduce home sales by 10 to 15 percent. Prices may rise sharply in the spring, but rapid gains and bubbles increase the likelihood of a 10 percent decline as prices rise and commodity prices rise. ”
B.C. real estate
Central 1 also expects certain key themes from last year to continue in 2022 and 2023. . “The pressure on inflation is what keeps us going. This will contribute to a stronger recovery in the hospitality and other disadvantaged sectors. This shift is also reflected in exports as the tourism industry will continue to recover from the downturn, although a full recovery could take place by the year 2023. ”
Non-residential investments will grow next year as corporate investment firms and major projects are built, Medium projects 1. “Commodity markets also encourage private investment,” the report said. “The provincial government is likely to have a positive view of revenue if you look at the broader economic potential, the revenue and the monarchy. The strong financial image raises the bar for government to continue spending more on health care, education and public infrastructure for BC. The big question for the economy comes from 2024 and in the second half of the decade when major power projects started operating without a clear investment that would take their place. ”
Of course, such predictions have their limitations, Central 1 emphasizes. “Undoubtedly as was the case with this disease, opinions are full of dangers,” the report concludes. “We think there are no new species that are economically viable or generally soft. Other risk factors include major banks that may be more enthusiastic about mountain climbing rates as the passing of time passes, lowering the economy beyond what is needed. ”
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