Strategic Context
Key Opportunities
Asia Pacific: British Columbia is Canada’s gateway to the growing Asia Pacific region. Establishing British Columbia as the pre-eminent trade and cultural hub between Asia and North America will ensure all British Columbians benefit from our growing relationship with and proximity to the Asia Pacific. Asia’s dramatic demographic changes have created a demand for not only our traditional resource products, but also new products and services such as urban infrastructure design, planning and development; engineering; clean energy; health care; and tourism — all areas where British Columbia has expertise and competitive advantage.
Economic Expansion: Provincial economic growth is measured by the increase in gross domestic product (GDP). When B.C.’s GDP rises, it reflects an increase in the production of goods and services as well as increased earnings for workers. A greater increase in GDP means a better outlook for the provincial economy. That gives B.C. increased opportunity to attract additional trade and investment and workers to support that growth. According to B.C.’s independent Economic Forecast Council, the B.C. economy grew 3.1 per cent in 2007, lower than the 3.4 per cent expected at the start of the year. B.C.’s economic growth is expected to moderate somewhat, with 2.8 per cent growth in 2008, followed by growth of 3.0 per cent in 2009 and average growth of 2.9 per cent for the 2010 through 2012 period.
Labour Market and Trade: Implementation of provincial initiatives aimed at trade, investment and labour markets, the workforce and the economy will advance the growth of skilled, diversified and well-paying jobs for British Columbians. The Province must make good use of all labour market resources, especially under-utilized workers such as those with disabilities, Aboriginal people, skilled immigrants, women, mature workers and those who lack training. There is also the need to recruit skilled workers from other countries to meet provincial labour force needs. The broadly recognized success of the B.C.–Alberta Trade, Investment and Labour Mobility Agreement encourages other provinces, territories and the federal government to build more open and competitive markets for the benefit of all consumers, workers, businesses and investors.
New Relationship: The Province recognizes that B.C.’s full potential will only be realized when Aboriginal people participate fully in the social and economic life of the province. The Ministry of Economic Development is working with First Nations leadership, First Nations communities, the Métis Nation British Columbia and other Aboriginal organizations to increase economic opportunities and the participation of Aboriginal people and First Nation communities in building their own economies and participating in regional and provincial economies.
2010 Olympic and Paralympic Winter Games: The 2010 Winter Games create the opportunity for unparalleled international exposure for B.C. and will open up new opportunities for investment and business development. The Province is maximizing these opportunities internationally and creating programs so businesses can take advantage as B.C. prepares to host the 2010 Olympic and Paralympic Winter Games. In addition, infrastructure investments leading up to the Games will give a significant boost to the provincial economy.
Knowledge Based Industries: The Province has invested $1.5 billion over the past three years to support research activities at B.C.’s universities, university colleges and other institutes. Some of B.C.’s research institutes are world-class and produce cutting edge research. To maximize these investment dollars, the Ministry works to promote B.C.’s research opportunities in order to attract investment and accelerate the commercialization of B.C.-based research, particularly in life sciences, information technology and new media, and clean technology.
Key Challenges
Export Growth Strongly Rooted in Resource Industries: Nearly 80 per cent of B.C. exports to other countries and 48 per cent of exports to other provinces are goods based. Growth in export diversity, particularly strengthening service sector exports, will help balance the strong cyclical forces common in goods industries.
Productivity: A key factor to improving living standards is increasing productivity, generally measured by output per worker and per hour. Improvements to productivity in British Columbia have generally lagged that of other Canadian provinces and American states. Improvements in productivity are necessary to fuel economic growth and raise B.C.’s standard of living.
Skill Shortages and Demographics: British Columbia’s robust economic growth and record high employment rate have increased the shortage of highly skilled people that businesses need to grow and expand. In addition, the province will face a major challenge in replacing skilled workers who are expected to retire over the next two decades. In order for business and industry to meet their labour force needs, they will have to tap into all sources of workers in B.C. Increasing employment opportunities for Aboriginal people, particularly the growing Aboriginal youth segment of the population, is an important component in addressing the province’s skills and labour shortage. Analysis shows that different strategies are needed to address the shortage of workers, requiring a new focus on attracting and retaining skilled immigrants to British Columbia. Immigration is a key source of new labour force growth in B.C. and will continue to be for the next decade.
Strong Canadian Dollar: Appreciation of the Canadian dollar has both positive and negative impacts. Generally, companies with revenues in US dollars and costs in Canadian dollars will be hurt by a stronger Canadian dollar as they lose the price advantage that results from a weaker currency, and must compete on a more equal footing with US and other global companies. Companies coping with a strong currency are often forced to find other cost cutting methods such as inventory and staff reductions in an effort to become more competitive.
Access to Venture Capital: B.C. traditionally has not had access to the level of venture capital that reflects our potential for growth. Attracting additional investment is essential to creating a mature venture capital market in B.C. This in turn ensures that companies can grow in B.C. and the benefit of that growth remains in B.C.
Mountain Pine Beetle: Pine forests dominate the interior of B.C., and the economy of many communities. Projections indicate the mountain pine beetle infestation could kill the majority of the pine forest in British Columbia by 2013. Reinventing the economy of these communities in time to adapt represents an enormous challenge.
 |
 |
 |
