BC Economy is Expected to Lead the Post-Pandemic Recovery in Canada

According to a new report from Deloitte Canada, the BC economy is expected to lead the post-pandemic recovery in Canada. While the data is still new, BC is expected to post the mildest downturn and the and the quickest recovery to pre-COVID levels.

It should be stated that although BC is expected to out-perform the other provinces, we can still expect a severe recession that will be worst than the 2008 financial crisis. This will be largely due to the service sector, hospitality and tourism being ravaged by the impact of COVID-19.

The report calls for the BC economy to shrink by 5% this year, before growing by 6% in 2021. That would mean we could see pre-pandemic levels in the economy in as little as one-year. This is an outstanding recovery forecast compared to the rest of the world. Canada’s economy as a whole is expected to contract by 5.9% this year before growing by 5.6% in 2021.

There are several reasons why the BC economy is expected to lead the post-pandemic recovery in Canada. One of the biggest is we have had much success bending the curve on the number of new infections, so far. Although the economy took a massive hit when non-essential businesses were shut down and travel was heavily restricted, that is one of the biggest reasons why we will recover faster than other provinces, and other parts of the world.

Another key policy decision made during the shutdown was that residential and commercial construction was considered essential and should not stop. Although there were many modifications made to work sites with new distancing requirements and scheduling so different trades were not working too close together, new construction projects were slowed down slightly, instead of stopping completely.

Construction in BC is the second biggest economic sector with 8.91% of the GDP, second only to real estate which is directly tied into the construction industry. This is one of the reasons why the BC economy is expected to lead the post-pandemic recovery in Canada. Construction creates primary, secondary and tertiary industries. There is an endless amount of prime and sub-contractors with each of them requiring equipment and tools necessary to complete the job. This creates demand for new construction equipment, as well as used equipment to supplement existing fleets.

Handlers Equipment has been at the forefront of the economic recovery in BC thanks to our previous investment into premium construction equipment from world-renown manufacturers. Come visit our facility today to browse our new and used construction equipment.