BC economy expected to expand at twice the national average
Canadian Economic Growth (Q1'2016) - May 31, 2016
The Canadian economy rebounded from a sluggish end to 2015, with real GDP (economic output adjusted for inflation) growing at a 2.4 per cent at an annualized rate in the first quarter of this year, well short of the 3 per cent growth expected by most economists. Economic growth was led by a rise in exports, residential investment and household consumption.
Growth is expected to slow sharply in the second quarter as a result of the wildfires in Alberta and their impact on oil production. However, the economy is expected to recover in the third and fourth quarter as the rebuilding effort gets underway and an expected increase in federal government spending is realized. Slow growth will keep the Bank of Canada on the sidelines in 2016, even as the US Federal Reserve looks to raise interest rates as early as June. Of note, while Canada's economy as a whole is on track to expand at around 1.5 per cent this year, the BC economy continues to prosper and is tracking at 3.3 per cent growth for 2016.