B.C. economy watch: Looking ahead
January 26, 2011
More than a year into its recovery, British Columbia's economy has recovered much of the ground lost during the recession of 2008-09. However, the rebound that began in late 2009 and carried into 2010 slowed over the second half of last year, with the economy downshifting to a more tepid growth trajactory as 2011 begins. Even Canada, for all its advantages, is poised for some de-leveraging, particularly by households, which are carrying a record high level of debt relative to thier disposable income: 148 per cent. Recent steps by the federal government to tighten mortgage lending signal that policy-makers are worried about the volume of credit extended to the household sector. With many consumers pulling back and exports expected to struggle in the face of a sky-high dollar, Canada's economy is likely to disappoint in 2011, with real GDP growth slipping below last year's p;ace before picking up in 2012, so stated by Vancouve Sun issues and ideas.