A recent article in the Vancouver Sun says that Southwestern BC will not fall into recession.
This is good news for most Vancovuerites who have been watching the stock market bounce for over a month now with news from the US credit crunch and $700 billion dollar bailout. What we all really need is an escape from realty as of late. The chicken little's of the world have been out telling anyone who will listen that the sky is defintely falling with the "I told you so" attitude.
What the article does say is that there will be a dramaitc drop in housing statrs over the next 2 years. I believe this is good news as what we have seen in Metro Vancouver over the past two years is nothing short of dramatic in the number of residential buildings that have been popping up on every street corner.
There will be a drop in the number of sales throughout the Lower Mainland as well as our real estate prices, of which we have already seen, as well economic growth.
"Those wealth effects have reached British Columbia and people are feeling less wealthy. As a result, they are not increasing their consumption as much as they did over the past several years," says Central 1 economist David Hobden.
While inflation is predicted to stay about the same slower economic growth will translate to slower job growth.
The 2010 Winter Olympics will give tourism a huge boost but broader economic factors will keep tourism growth slow during the entire forecast period. Higher gas prices and a higher Canadian dollar will continue to affect both domestic and U.S. tourist visits.