Vancouver’s economy is “resting” right now, having slowed down just a bit over the past couple of years according to some new numbers from the CIBC.
There are two main reasons why we are no longer the economic engine we once were and why it seems we may be stuck in something of a rut.
CIBC Deputy Chief Economist Benjamin Tal says the slowing economy in China and the fact prices across the real estate market are dropping is not helping our case.
But the fact condo prices, especially, he says are dropping could actually be a good thing. “I think this slow down and the decline in the rating is actually a positive situation in which the city is getting a break, and a well-deserved break.”
He’s not predicting any new economic growth in Vancouver over the next couple of years. “I do believe Vancouver is positioned in a very positive way to continue to outperform the national average; a) because of its exposure to emerging markets and b) because of the size and how diversified the economy is,” he adds.
He says our stable labour market will help keep numbers steady.
The city ranked eighth this year dropping out of the top five from 2012. Surprise, surprise, Toronto was 1st.
Rank CMA 3Q Moving Average
1. Toronto 20.6
2. Calgary 19.5
3. Regina 18.4
4. Winnipeg 18.4
5. Saskatoon 18.2
6. Edmonton 17.8
7. Ottawa 16.8
8. Vancouver 14.0
9. Halifax 13.8
10. Saguenay 12.2