How Is BC Faring In The Global Economy?
Our Economy in Recovery
Today, Canada’s economy has largely recovered from the COVID-19 crisis. Canada has been protected from greater, global economic impacts due to high resource prices and limited trade ties to those countries impacted by the Russian-Ukraine war.
BC has a strong economy, with unemployment near historic lows. Although at 30-year record highs, inflation in BC hasn’t risen to quite the same level as other Canadian jurisdictions.
LNG and Northern British Columbia
BC’s natural gas production climbed by 14 percent earlier this year and continues an upward trajectory, pushing production. Ongoing work on the LNG plant in Kitimat is boosting construction activity and there is a high demand for highly skilled workers, with employment in the professional, scientific, and technical industries jumping seven percent since the end of 2021. Wages are expected to increase.
Canada’s post COVID-19 economic rebound has been strong and fast. Wages at pre-pandemic levels and record low unemployment has resulted in inflation. Although Canada’s inflation rate has remained close to two percent for the past 25 years, earlier this year inflation hit a 30-year high of 5.7 percent.
Central banks have raised interest rates as a means to curb inflation leaving British Columbians, who have some of the highest debt burden in the country, vulnerable to higher interest rates.
Effects on Mortgage Holders
Rising interest rates also means rising mortgage rates. For homeowners in the North Peace Region, this will translate into additional overall interest and higher monthly mortgage payments. When you see these changes in your household will depend upon whether you have a fixed or variable rate mortgage.
Want help creating a financial plan that works for you today and for your future? Talk to one of our North Peace Savings & Credit Union Advisors today! 1-877-787-0361