October 2010 BC Economic Fundamentals

[Ally]

B.C. economy to slow next year: Central 1

VANCOUVER — B.C.`s economic growth will slow to 2.4 per cent in 2011 but pick up steam in the following two years, Central 1 Credit Union predicted Monday in its latest report, Economic Analysis of B.C.

"The economic recovery in B.C. is well established, and the slowdown foreseen in 2011 will be temporary," a statement from Central 1`s chief economist, Helmut Pastrick, said.

"B.C.`s economy is predicted to grow at above three per cent in both 2012 and 2013, with the upswing in global growth and higher domestic consumer spending and business investment."

The report says this year`s economic growth is estimated at 3.1 per cent, compared with two per cent in 2009.

But the economy will shift downward in 2011 with the global economic slowdown, less fiscal stimulus and without this year`s boost from the 2010 Olympics.

The report said domestic sectors will be the growth drivers, and that a resurgence in private investment, a stronger global economy and increased consumer spending bode well for 2012 and 2013.

Read the full article here.

 

[Ally]

B.C.`s premier best fiscal manager, Ontario`s worst: Study

OTTAWA — B.C. Premier Gordon Campbell ranks No. 1 in terms of dealing with fiscal policy whereas Dalton McGuinty, premier of Ontario, is the weakest, according to an analysis conducted by the Fraser Institute think-tank released Monday.

Further, the study`s authors suggest premiers from Western Canada tend to be better fiscal managers than their counterparts in central and Eastern Canada.

"Of the 10 premiers we examined, Premier Campbell simply did a better job than the others of managing his province`s public finances and pursuing sound long-term economic policies," said Niels Veldhuis, Fraser Institute`s senior economist and co-author of analysis.

"Given the size of Ontario`s economy, the last-place ranking of McGuinty is particularly alarming. The lesson here is that McGuinty should follow Premier Campbell`s lead and stick to prudent spending increases, lower taxes, and surplus budgets."

The Ontario government has mapped a slow road to balancing the province`s books. It has projected a deficit of $19.7 billion for fiscal year 2010-11, and would remain in the red until 2017-18.

Read the full article here.

 

[Ally]

West Vancouver changes secondary suite rules

West Vancouver`s secondary suite owners will soon be free to live away from home.

Council has voted unanimously to relax the district`s secondary suite bylaw by removing the owner-occupancy requirement for homes with secondary suites. Under the bylaw amendment, owners living away from the residence must provide a contact within the Lower Mainland who is responsible for management and maintenance.

The bylaw change also states that secondary suite owners not occupying the residence will be charged a $450 annual licensing renewal fee. Secondary suite owners occupying their residences are charged $350 annually.

Read the full article here.