It forecasts real GDP to grow in 2015 by 3.1 per cent followed by growth next year of 2.8 per cent.
RBC notes that international merchandise exports advanced at a solid rate last year, which was led by the strongest increase in the nominal value of goods shipped to the U.S. in more than a decade.
The increased competitiveness of British Columbia’s merchandise goods, resulting from a weaker Canadian dollar, is set to further boost external demand in 2015.
Still, softer demand from Alberta provides some downside risk to the value of goods shipped from British Columbia across the Rockies this year and the RBC outlook says that was reflected in the provincial budget.
It says the provincial government affirmed its surplus position, although the focus was on prudence to ensure the province’s fiscal health is maintained during the government’s three year plan.
It adds prospects for the development of a liquefied natural gas industry were given support by the federal government’s LNG tax initiative, which may influence proponents to commit to final investment decisions later this year.
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