VANCOUVER, British Columbia, April 9, 2024 (Globe Newswire) — According to BC Checkup: InvestConstruction of 47,894 homes began in 2023, a record high, according to the Chartered Accountants of British Columbia (CPABC)'s annual report on investment trends across the province.
“B.C. faced a challenging investment environment in 2023 as rising interest rates and inflation impacted affordability,” said Lori Mattison, FCPA, FCGA, LLB, president and CEO of CPABC. ” he said. “Despite these challenges, investment in residential construction remained strong, particularly in high-density units.”
Of the total number of housing units started, 40,866 (85.4 percent) were accessory units such as condos, apartments, and townhomes, an increase of 20.3 percent from 2022. Investments in non-residential construction amounted to $7.9 billion, an increase of 6.5% from 2022. , there has been a notable increase in investment in institutional and government projects, especially health facilities.
However, BC's major project inventory was valued at $373 billion in the third quarter of 2023, a decrease of 4.2% compared to the third quarter of 2022. The LNG Canada Facility ($36 billion) project remains the largest in the province and is approximately 85% complete as of December 2023.
“Major project activity is expected to slow in 2024 as many large 'megaprojects' are nearing completion and the proposal stage pipeline is weak,” Matheson noted. “However, interest rates are expected to fall later this year, which should alleviate some of the burden associated with high borrowing costs.”
British Columbia's annual inflation rate continued to rise moderately in 2023, after reaching a 40-year peak in 2022. As of February 2024, the province's consumer price inflation rate was 2.6% year over year, well within the Bank of Canada's target range. The Bank of Canada has maintained its policy rate at 5.00% until its latest decision on March 6, 2024.
The impact of rising interest rates will be felt across the economy in 2023, with real economic growth expected to be around 0.9%, and even lower growth in 2024 at 0.5%. At the same time, the population growth rate is expected to exceed that. Short-term economic growth. Real GDP per capita is expected to decline by 2.2% in 2023 and further decline by 2.3% in 2024 before stabilizing in 2025.
“B.C.'s economic output is expected to be flat in 2023, with a weak outlook for 2024, allowing us to prioritize policies that foster capital investment and address affordability challenges facing residents. It’s important,” Matheson continued.
The report also highlights the impact of government spending and record capital spending on state debt. British Columbia's taxpayer-supported debt as a percentage of GDP is expected to rise from 17.6% in 2022-23 to 27.5% in 2026-27, representing an estimated $54.6 billion in taxpayer-supported debt. will increase.
“The state government has announced a significant spending package in the 2024/25 budget. The three-year plan announced by the government represents a significant departure from past fiscal plans. It is essential to prioritize strategies that It is about preserving the state's ability to meet future challenges. ”
For more information, please visit www.bccheckup.com.
About CPA British Columbia
The Chartered Professional Accountants of British Columbia (CPABC) is the training, governing and regulatory body for over 40,000 CPA members and over 6,000 CPA students. CPABC fulfills its primary mission of protecting the public by enforcing the highest professional and ethical standards and contributing to the advancement of public policy. CPAs are internationally recognized for bringing superior financial expertise, strategic thinking, business acumen, and leadership to organizations.
CONTACT: For more information: Jack Blackwell, Economist 604.259.1143 news@bccpa.ca
