Above national average BC growth prediction

According to a new report from Scotia Economics published in the Vancouver Sun, BC growth in the 2011-2012 period will lag behind that of Alberta and Saskatchewan, but will still top the national average.

Overall Canada’s economy is projected to expand year-over-year, by 2.4 percent in 2011, and 2.7 percent in 2012.

The bank forecasts GDP in this province will average 3 percent, with Alberta at 3.7 and Saskatchewan at 3.5.

Mining development is expected to be a key source of growth in BC, but natural gas development will also play a role.

The Horn River and Montney shale plays here in the Northeast together represent the engine driving the development, with four proposed liquefied natural gas terminals now on the drawing board.

That could see up to four billion cubic feet of gas exported daily to lucrative Asian markets, where prices are more closely tied to the value of crude oil.

The bank also says BC’S forest industry has “Shown a remarkable turnaround”, in the wake of the multi-year contraction in U-S housing.

It says increased demand for wood from China has led to a surge in overseas exports, and it also expects increased demand from Japan, as it rebuilds in the wake of the March earthquake and tsunami.