According to a recent report from Deloitte Canada, British Columbia is the best prepared province to recover from the economic uncertainties that have arisen from COVID-19.
“The B.C. economy will be the outperformer, posting the mildest downturn and returning to pre-COVID levels the quickest,” explained Deloitte Canada's chief economist Craig Alexander. He added the service and hospitality industries of British Columbia have been hit the hardest.
“But if we look at the economic contraction and recovery in B.C., I think that you’re likely to find that the contraction is a bit less than the national average,” he explained. Alexander believes the province's recovery will also be “a bit stronger” than the national numbers
“B.C. elected to say, ‘Given the type of work that was taking place … that residential construction was actually essential.’ So, it was kept open,” Alexander stated.
“So those sorts of policy decisions combined with a better record in terms of [COVID-19 cases] are why I think B.C. is going to outperform.”
"The road to a full recovery, defined as economic activity reaching its pre-COVID-19 level, will take at least six quarters. This is due to continued health risks and the gradual nature of the economic reopening. It will also be hindered by expected weakness in the commodity sector.”
Economists at the Business Council of B.C. (BCBC) recently forecasted the province’s GDP will decrease 7.8 per cent in 2020. The BCBC also expects the province’s economic decline to be as less notable than the rest of the country.