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Lumber industry credited with Canadian growth
02/07/2010
The resurgent lumber industry is likely to be the cause of the expected respectable growth of British Columbia's gross domestic product.
The Royal Bank of Canada reported on Thursday that the province should grow by 3.5 per cent in 2010, in its greatest show of strength since 1996.
A spokesperson said the return to life of the long-troubled forest-products sector was singularly the most encouraging development of the year in the provincial economy.
"In particular, the softwood-lumber industry is benefiting from market conditions that are finally showing signs of turning around, with prices recently hitting four-year highs," the spokesperson said.
BC and Quebec share the country's third-fastest growth rate this year, behind Newfoundland's 4.1 per cent and the 3.8 per cent growth foreseen for both Ontario and Saskatchewan. The figures have been a particular achievement for BC, considering the GDP contracted by 2.4 per cent last year.
The report said that also enjoying greatly improved markets are pulp producers, who have benefited from the price of Canadian lumber approaching record highs in recent months.
Consumers in the west coast province have also showed renewed confidence, with a rise of 7.2 per cent predicted for retail sales.
The Royal Bank of Canada reported on Thursday that the province should grow by 3.5 per cent in 2010, in its greatest show of strength since 1996.
A spokesperson said the return to life of the long-troubled forest-products sector was singularly the most encouraging development of the year in the provincial economy.
"In particular, the softwood-lumber industry is benefiting from market conditions that are finally showing signs of turning around, with prices recently hitting four-year highs," the spokesperson said.
BC and Quebec share the country's third-fastest growth rate this year, behind Newfoundland's 4.1 per cent and the 3.8 per cent growth foreseen for both Ontario and Saskatchewan. The figures have been a particular achievement for BC, considering the GDP contracted by 2.4 per cent last year.
The report said that also enjoying greatly improved markets are pulp producers, who have benefited from the price of Canadian lumber approaching record highs in recent months.
Consumers in the west coast province have also showed renewed confidence, with a rise of 7.2 per cent predicted for retail sales.
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