2013 looking good for B.C. economy
Forecasters see modest growth for province in still-turbulent world economy
The Canadian Press
Posted: Nov 16, 2012 9:07 PM PT
Last Updated: Nov 16, 2012 9:25 PM PT
B.C.'s finance minister says the province's outlook is modestly positive, according to some of the best business minds in the country. (CBC)
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B.C.’s finance minister says he's received advice from some of the smartest business minds in Canada and he's optimistic the province will see modest economic growth next year.
Mike de Jong spent much of Friday with members of the B.C. Economic Forecast Council, an organization that includes 14 of Canada's most respected, independent forecasters. Council members provide the minister with economic advice as he plans the province's budget and fiscal plan.
The council told de Jong it expects the provincial GDP to be about 2.1 per cent for 2012 and slightly higher in 2013, outperforming the average for the Canadian economy.
"The terms I heard a lot today: modest growth, caution. These are still turbulent economic times internationally," he told reporters after the meeting.
Other issues discussed included international markets and how they will affect B.C., the recovery of the U.S. economy, the liquefied natural-gas industry, rising household debt, tax competitiveness and the need for skills training because of labour-market demands.
To cover the province's deficit and balance the forecasted $1.1-billion budget, de Jong said his government will continue to focus on hiring freezes, wage freezes for excluded staff, modest negotiating mandates for unionized workers and constraints on all non-essential spending.
De Jong said the council complimented the government on how it's managing the books, noting the province has more flexibility than virtually every other jurisdiction because of its financial and debt discipline.
He said the government also received compliments for how it has diversified its trade markets, especially for products like lumber that are being exported in greater numbers to China and other Asian countries.
At the same time, though, he acknowledged gaps in skills training.
"We are going to want to address that," he said.
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