Q&A
REGIONAL PROFILE
CANADA’S WEST COAST DECELERATION
Canada’s West Coast provinces wade
through a sluggish economy.
While the economies of British Columbia and
Alberta have slowed down, both are expected to
rebound in 2009. Alberta’s economy is not as
affected by the slowdown in the United States as the
economies of central Canada and British Columbia. The
oil sands project activity underway in Alberta will start to
pay off in 2009.
In British Columbia, the forestry industry is taking a hit
from the slowdown in the United States. A large part of the
province’s manufacturing industry is tied to forestry. The difficulties are expected to bottom out in 2009. Meanwhile, the
construction sector continues to do well, thanks to the 2010
Winter Olympic Games, scheduled for Vancouver.
Marie-Christine Bernard, associate director, provincial
forecast, The Conference Board of Canada, highlights the
state of the economy for these provinces, as well as outlines the forecast for 2009.
Global Corporate Xpansion: What do the Conference
Board of Canada’s latest Economic Indicators say in regard
to the overall Canadian economy?
Bernard: We are seeing difficulties in the trade sector
due to the weakness of the economy in the United States.
They are demanding less of our manufactured goods,
especially from the auto industry.
This will cut one percentage point from growth compared to 2007. We were expecting the Canadian economy
to grow by 1. 7 percent in 2008.
If we look at the domestic economy, it is still doing quite
well. Labor markets have remained strong so far this year.
There are still real wage gains, and tax cuts at the federal
level and some provinces.
So overall for consumers, the situation is quite good,
but the Canadian economy will see more moderate growth
due to difficulties in the auto industry.
