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  • Slight rebound and moderate growth for BC this year

    It's a long road ahead.

    Economic rebound in BC will be slow and steady at best, according to figures released by the provincial government on Friday.

    While the pandemic raged most of 2020, BC's real gross domestic product (GDP) dropped by 5.1%, according to the Economic Forecast Council, a group made up of 13 independent forecasters from banks, other financial institutions and third-party organizations across Canada.

    The council predicts growth of 4.7% this year and 4.3% in 2022.

    Growth of almost 5% this year sounds pretty good.

    But, what you have to remember is the uptick comes after 2020's plunge of more than 5%, so BC's economy will not recover to pre-COVID levels until at least early 2022.

    </who>The provincial government released figures Friday indicating economic recovery will be slow.

    "We need to be realistic about the long road ahead," said BC Finance Minister Selina Robinson.

    "Our priority will continue to be responding to the needs of people, businesses and communities, during the pandemic response and into recovery."

    </who>BC Finance Minister Selina Robinson

    The council's statistics are actually more optimistic than the provincial Ministry of Finance's.

    The ministry's numbers estimated the GDP declined 6.2% in 2020 and the gain in 2021 will only be 3%.

    Such figures indicate BC might not get back pre-COVID economic strength until early 2023.

    The economic low point of the pandemic was April 2020.

    Since then, BC has had nine consecutive months of job growth.

    But, again, remember that growth came after employers slashed staff, meaning the province is still not back to pre-COVID levels.

    The BC government has helped people, businesses and communities with worker benefits, income and disability assistance top-ups and temporary tax reductions and deferrals, according to Robinson.

    The StrongerBC plan is helping support infrastructure improvements and growth so more people can get back to work.

    The province will also push for quick vaccination, housing affordability, liquefied natural gas (LNG) development and craft policies, all in an effort to speed recovery.

    Economic slowdown and extra spending on pandemic support and recovery means the provincial deficit has ballooned to $13.6 billion for 2020-21.

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