Figure 1: Current state of the BC economy
Figure 2: Two-year forecast for BC’s economy compared
to other regions in Canada
70%
2012
Grow faster than
the Canadian average
60%
Excellent
Good
Fair
Poor
50%
40%
30%
2013
Grow at approximately
the same pace
Grow at a
slower pace
Remain at the
present level
20%
10%
Contract
0
2011
2012
2013
years. History will judge whether these forecasts become reality; but for now, they
suggest a confidence in the resiliency of the
US economy and a willingness to see the
nation restore its position of global economic
primacy.
On the Asian economy
With BC serving as Canada’s Pacific gateway
to Asia, this year’s edition of the Business
Outlook Survey solicited opinions on Asia’s
economic prospects. Given the region’s importance to our provincial economy, it was
not surprising to find that the results closely
mirrored those for the BC economy. More
than 90% of respondents rated Asia’s broader regional economy as “fair” or “good”;
34.4% expect improvement in the next two
years, and nearly 62.6% expect improvement
during the next five years. More interesting,
perhaps, were respondents’ views on Asian
trade policy, with nearly 48% saying they
expect trade policy to be a source of moderate
or major challenges.
0%
5%
10%
15%
20%
25%
30%
35%
40%
are now more closely aligned to national prospects than in past years. (See figure 2 above.)
On business challenges
As indicated in figure 3 (see page 20), the 2013 survey respondents identified the following as
major or moderate challenges to business success (in order of importance): 1) uncertainty with
regard to the global economic climate; 2) attracting and retaining high-calibre employees/
skilled labour; 3) housing prices; 4) the ability to raise capital; 5) uncertainty with regard to the
provincial economy; and 6) uncertainty with regard to the Canadian economy.
These were the same top six issues identified in 2012. However, looking at the results more
closely, opinions about three of these issues stand out: first, the percentage of 2013 respondents
who said uncertainty about the global economy was a major challenge fell more than 11 ppt,
On BC’s future prospects
As discussed above, the survey results showed
that nearly four out of 10 respondents expect
the provincial economy to improve during
the next two years. However, respondents
share similar views with regard to the
average growth prospects in other regions of
Canada. As a result, only 26.7% of those
surveyed expect BC’s economy to outpace the
Canadian average; 22.5% expect BC’s economy
to grow at a slower pace; and the majority
expect BC’s economic growth to mirror the
average growth rates in other regions of
the country. These results further support the
argument that provincial economic prospects
CPABC in Focus • Nov/Dec 2013
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