Forecast brighter for B.C. in 2010

B.C. is emerging from its economic slump with a small improvement in growth projections for 2010, according the latest report from the B.C. Economic Forecast Council.

Finance Minister Colin Hansen says the average growth projection of 2.9 per cent for 2010, up from 2.5 per cent projected in September, is mainly a result of increased housing starts, along with higher metal and commodity prices.

"Our economy is beginning to show signs of stability," Hansen said after releasing the council's latest findings Friday.

He said the bank economists and other experts on the council reinforced his earlier warnings that the situation remains volatile. Major risks to the B.C. recovery are a stronger than expected Canadian dollar, slow global demand for B.C. experts and a U.S. economy that continues to struggle.

With 2009 coming to a close, council members estimated that B.C.'s economy would finish the year between two and three per cent smaller than 2007. One of the more optimistic members is Marie-Christine Bernard of the Conference Board of Canada, who forecasts that after a two per cent decline this year, B.C. will see a 4.2 per cent in real gross domestic product in 2010, in part due to hosting the Olympics.

On the pessimistic side is Jock Finlayson of the B.C. Business Council, projecting a three per cent decline for 2009 and growth of only 2.8 per cent for 2010.

Employment growth lags behind economic recovery. B.C.'s seasonally unemployment rate was 8.3 per cent in November, unchanged from October, according to Statistics Canada's labour force survey.

Regionally, the lowest jobless rate was 5.8 per cent in the Northeast where natural gas development is booming. The highest was 12 per cent in the Cariboo.

Compared to the same month in 2008, the Thompson-Okanagan job market improved while all other regions continued to see job losses.