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Ministry of Technology, Trade and Economic Development

“The strong performance of
business investment and entrepreneurial activity in British Columbia over the past three years reflects solid fundamentals: high levels of business and consumer confidence, a sound fiscal situation, a healthy domestic economy and buoyant export sector, and a more competitive business climate.”

– Jock Finlayson Executive Vice-President, Business Council of British Columbia

British Columbia’s rapidly expanding and diversified economy is generating a wide range of exciting investment opportunities.

A competitive tax system and robust fiscal position, together with ongoing investments in infrastructure and public services, are helping to drive economic growth.

ROBUST ECONOMIC PERFORMANCE
>  Real gross domestic product (GDP) grew by 3.3 per cent in 2004, outpacing the average growth rate of the G-7 countries for the third consecutive year.
   
>  Capital investment by corporations reached $17.2 billion in 2004, up almost 4 per cent over 2003. Foreign-owned firms accounted for 26 per cent of this total.
   
>  New business incorporations reached almost 28,000 in 2004, a 10 per cent increase from 2003.
   
>  International goods exports rose by 11 per cent in 2004 to $31.6 billion. Exports to the Asia Pacific region jumped by 17 per cent to more than $8 billion.

DYNAMIC LABOUR MARKET  
>  The labour force grew by 1.3 per cent in 2004 to over 2.2 million. Employment increased by 2.3 per cent to 2.06 million.
   
>  Labour costs, adjusted for productivity gains, increased by only 1 per cent in 2004.

STRONG FISCAL POSITION
>  As required by provincial law, British Columbia’s government presented balanced budgets for 2004/05 and 2005/06. Budget surpluses are projected in 2004/05, 2005/06, and 2006/07.
   
>  Noting British Columbia’s success in meeting budgetary targets, low taxpayer-supported debt load, and solid economic performance, Standard & Poor’s upgraded the province’s credit rating in 2004 to AA – one of the highest ratings of any Canadian province.

         
  British Columbia Economic Performance Indicators  
    2002 2003 2004    
  Real GDP (% change) 3.3 2.5 3.3*    
  Inflation rate/GDP deflator          
  (% change) 0.3 2.6 3.2*    
  Labour force (thousands) 2,158 2,191 2,219    
  (% change) 2.6 2.2 1.3    
  Unemployment rate (%) 8.5 8.0 7.2    
  Unit labour costs (% change) 0.2 0.8 1.0*    
       
* Ministry of Finance estimates
Source: Ministry of Finance

POSITIONED FOR CONTINUING EXPANSION
>  New growth opportunities – Emerging high-growth sectors of British Columbia’s economy are demonstrating impressive growth:
  • Life sciences
  • Alternative energy
  • Software development
  • New media
  • Environmental technologies
  • Resort, adventure, and eco-cultural tourism
  • International trade and financial services
  • Advanced manufacturing
>  Strategic location – As a leading gateway between the Asia Pacific region and North America, we are strongly positioned to further lever the growth potential in knowledge-based industries, advanced manufacturing, tourism, and natural resource development.
   
>  Outstanding talent – Ongoing investments in education and training, plus inflows of global talent attracted by an unsurpassed quality of life, will continue to add value to British Columbia’s most important asset.
   
>  The 2010 Olympic Opportunity – In 2010, British Columbia will host the Olympic and Paralympic Winter Games. This landmark event will generate up to $10 billion in new economic activity and permanently enhance the province’s profile as an international business location and tourism destination.