Forecast sees B.C.’s economy growing in 2021, but warns hospitality sector could lag

The Central 1 Credit Union’s latest forecast for the B.C. economy is predicting growth of 4.2 per cent this year, 4.5 per cent next year and three per cent in 2023.

Central 1 Credit Union chief economist Bryan Yu said housing demand is anticipated to remain robust.

2:43 Bank of Canada issues warning about overheated housing market

The Bank of Canada, meanwhile, warned Tuesday that Canada’s housing market is showing “early signs” of overheating.

B.C.’s exports should rebound over time, Central 1 said, as the global rollout of COVID-19 vaccines continues.

1:52 Tourism and hospitality industry unsure about survival in light of new economic recovery projections

On the downside, Yu predicts the hospitality sector and other face-to-face services are unlikely to fully recover in the next couple of years.

He said B.C. has gained 89 per cent of the jobs lost during the early stages of the COVID-19 pandemic, but tourism-related employment remains sharply below pre-pandemic levels.