BC Election Series: Post-Secondary Education and Innovation in the Party Platforms
Providing the next generation with opportunities to acquire the right skills contributes to stronger economic and productivity growth and should be a top-of-mind goal for incoming decision-makers. All three parties contesting the May 9 election have made promises regarding post-secondary education and innovation.
Vancouver’s Plan Will Hurt Residents and Local Businesses
Affordability is a key challenge for people residing in the City of Vancouver (COV). Yet, earlier this week, the COV’s Green Buildings Policy for Rezoning came into effect. Once implemented, it is sure to exacerbate this problem, not just for citizens of COV but for the province as a whole as well as for the surrounding municipalities of Metro Vancouver. The policy effectively bans the use of natural gas in new buildings. It also sets the stage for Vancouver to squeeze out natural gas as an energy source for existing buildings and facilities over time.
BC Election Series: Housing Affordability, Supply and Related Tax Policy Issues
Real estate, home prices, rental units and affordability figure prominently in all three party platforms. Each party has developed a substantial narrative around housing/housing affordability, with each platform proposing several housing-related policy measures or new/revised programs.
BC Election Series: MSP Premium Commitments and the potential for 55% Personal Income Tax Rates
All three parties contesting the May 9 election have made significant promises in respect of Medical Services Plan (MSP) premiums.
BC Election Series: Fiscal Planning and the Economic Cycle
Today, we comment on the overall fiscal context and constraints facing the government that will take office following the election, drawing on the 2017 BC budget and our assessment of the economic cycle.
The Investment Conundrum
Business non-residential capital spending has been on a declining trend for three years. The slump is particularly evident in the energy sector, but the weakness has spread well beyond the oil and gas industry.
Five Important Stories Affecting the BC Business Community in 2016
A list of five important stories affecting the BC Business Community in 2016 from the Real Estate boom to the opening of the Microsoft Vancouver development centre.
The Trump Presidency: Three Possible Silver Linings for Canada
For British Columbia and Canada generally, there are economic downsides and upsides from the new political order that’s about to take shape in Washington, D.C.
Growing More Significant-Scale Firms: An Important Innovation Goal for BC
In our new paper, “Innovation for Jobs and Productivity,” the Business Council argues that innovation is the key to creating and sustaining more high-productivity, high-wage jobs in the province.
Some Musings on the Metro Vancouver Real Estate Market
How do people in the lower mainland manage amid sky-high housing prices?
No Surprise: The Residential Real Estate Complex a Big Economic Engine in BC
Real estate sales have been running at record levels across the lower mainland, and home prices are surging. In response to elevated demand, new home construction has jumped to its highest level since the early 1990s. Renovation spending has also been strong. Casual observation and “water cooler chatter” speak to widespread media and public interest in real estate generally -- and housing prices in particular. In this setting, it will not come as a surprise that the data tracking economic output by sector confirms that real estate-related activity has become a critical factor underpinning economic growth in the province.
Is BC Really a Laggard on Climate Change?
In recent months, a number of groups have been advancing the message that BC is falling behind other jurisdictions in adopting policies to address climate change.
We find the claim deeply misleading.
On any reasonable assessment, BC remains a North American pacesetter on a number of important aspects of climate policy, with industry and government continuously improving policies and operational efficiencies through the availability of new innovations.
Investment Survey Signals Continued Weakness in Capital Spending
Statistics Canada’s just released capital expenditure survey confirms that the negative fall-out from sluggish energy and materials markets continues to take a toll on business investment across the country.
Fast Facts on BC's Tech Sector
Tech is a good news story for BC – a story that we expect to continue. The province enjoys strengths in several different technology-based clusters – software and information and communications technologies; wireless technologies; bio-tech, life sciences and health innovation; clean/green technologies; and gaming and digital animation. Today's blog offers a few key facts about BC's Tech Sector.
Commodity Price Slump is Weighing on the Canadian and the Global Economies
The ongoing decline in the US-dollar prices of most internationally traded commodity products has hit the Canadian economy hard, depressing incomes, triggering layoffs and capital spending cutbacks by hundreds of resource companies (and their suppliers), and hurting business and consumer confidence across much of the country.
Preliminary Comments on the New BC Labour Market Outlook
The BC government recently published new projections for labour demand and supply encompassing the next ten years. Overall, the new labour market outlook is an improvement over earlier efforts. It is based on more rigorous modelling and reflects extensive engagement with employers and other stakeholders who were consulted in the course of developing the detailed projections.
Imagining a “Post-Inflation” World
Across most of the leading advanced economies, inflation is running well below the rates targeted by central banks. In the United States, the principal inflation measure tracked by the Federal Reserve sits at barely 1%, despite an expanding economy and a rapidly tightening labour market. In Japan and the Eurozone, central banks have set policy interest rates at zero and are aggressively pumping money into the economy to avoid deflation – defined as a generalized drop in the price level. In both the UK and Canada, the short-term policy interest rates directly controlled by central banks remain near all-time lows.
Recent international trade numbers suggest some improvement in Canada's limping economy
Statistics Canada’s just released snapshot of Canada’s trade performance in June offers a hint that the much anticipated upturn in non-energy exports may finally be materializing.
Some Musings on the Bank of Canada’s Latest Rate Cut
What are we to make of the Bank of Canada’s decision this week to trim its benchmark policy interest rate by another 25 basis points, taking it to a near record low of 0.5%?
For one thing, the Bank is acknowledging that the energy-related downturn in capital spending and exports in Canada has been more pronounced than it was expecting earlier in the year – and the pain is likely to persist for a while yet. Canada’s economy, we are told, is facing “complex adjustments” that will unfold over the “next few years.” At the heart of these “adjustments” is a less rosy future for both crude oil and many other commodity prices. This is unwelcome news, as natural resource-based industries supply more than half of Canada’s exports and play a pivotal role in driving business investment in several regions of the country. A world of lower prices for oil and other commodities is a world in which Canadians can look forward to smaller increases in real incomes than we enjoyed during the decade that began in 2003 – a decade that coincided with a broadly-based global commodity upcycle that is now a fading memory.
A Milestone Looms: BC’s Economy Will Soon Hit $250 Billion
A steadily expanding population and ongoing modest economic growth are combining to propel the value of both spending and production in the province to ever higher levels. As a result, we are on the cusp of a significant milestone: by the end of this year or early in 2016, the value of all measured economic activity in British Columbia will reach one-quarter of a trillion dollars ($250 billion).