October 6, 2004 Things look very good for B.C. 's economy in 2005, an optimistic Glen Hodgson told his audience at The Board's Special Speaker Luncheon today. Hodgson is vice-president and chief economist of The Conference Board of Canada.
Hodgson believes B.C. 's economy in 2005, though predicted to have slower growth than 2004, is in very good shape, because economic activity is starting to even out across the sectors. Hodgson predicted that the province's economy would grow at a rate of 2.7 per cent over the next year, compared with Canada's rate of 3.2 per cent. There are several factors driving B.C. 's overall economy, not the least of which is the economic boom in China. "China is clearly important," said Hodgson. "The forest industry and mining have all felt the effect and the Chinese are looking to us to diversify their supply." Hodgson was also quick to reassure that despite China's extraordinary economic growth, its government is doing an exceptional job of keeping the economy stable. Hodgson also couldn't ignore the impact of the 2010 Olympic games on B.C. 's economy: with several billion dollars' worth of construction projects starting in the next few months, including major transportation upgrades, the economy stands to benefit greatly. The high price of oil is also proving to be a boon, said Hodgson. The current price of $50 US per barrel encourages the industry to search for oil domestically. This statement comes well-timed, as The Board of Trade is set to host a Policy Forum on the benefits of offshore oil and gas exploration on October 14th.
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