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British Columbia is poised to lead Canada in economic growth this year, according to the BMO Blue Book.
The data was released on Monday by BMO Capital Markets and Economics and BMO Commercial Banking. The BMO Blue Book combines the expertise of economists with information on current business conditions provided to BMO’s commercial bankers by local business people.
"Business momentum continues to be strong with our commercial clients investing into businesses and expanding into new markets," said Mike Bonner, Senior Vice President, BC and Yukon Division, BMO Bank of Montreal. "The low interest rate environment and the continuation of significant foreign investments into Vancouver and other parts of the province, including recent M&A activity in healthcare, are providing significant growth opportunities for our clients."
Photo Credit: BMO
The housing market continues to strengthen with mortgage rates currently at historic lows. Demand from the new Canadian investors market, primarily China, continues to grow. With that, the market for commercial real estate remains stable and demand for agricultural properties continues to grow as these buyers look to export value-added agricultural products to China.
"Economic growth remains sturdy in British Columbia, and is expected to lead the provincial pack in 2015," said Robert Kavcic, Senior Economist, BMO Capital Markets. "Real GDP is expected to expand 2.6 per cent this year, in line with the pace recorded in 2014, and leading the country for the first time in 10 years."
"Sales across the province hit the best level in more than five years in February; and while early-year demand was helped by mild weather, the underlying strength looks real," stated Kavcic. "That said, Vancouver still faces an elevated number of completed but unoccupied units on the market - mostly condos; however, that continues to trend downward. As a result, new residential construction activity will likely remain relatively stable as current supply is absorbed."
The full BMO Blue Book can be downloaded at www.bmocm.com/economics.
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