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Introduction

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The Mainland/Southwest Development Region (MSWDR) accounts for 36,000 km2, stretching from Lillooet at its northern extremity to the US border, and from the Sunshine Coast in the west, to Hope in the east. It includes Metro Vancouver (22 municipalities and one electoral district) and the resort municipality of Whistler. The MSWDR is the most densely populated part of the province, with over 2.7 million residents in 2009—60% of which resided in Metro Vancouver.

Metro Vancouver’s economy is highly urbanized, with workers employed in a diversified range of industries in the goods and services sectors. It is a major international trade and immigration hub, characterized by emerging new and high-technology industries, strong business and cultural linkages to Asia, and a high quality of life. In addition, the 2010 Olympics has catapulted Vancouver and Whistler into world prominence.

In contrast to Metro Vancouver, the economic base of the eastern portion of the MSWDR, which includes the Fraser Valley and Hope, is largely agriculture and manufacturing. Together Abbotsford and Chilliwack boast the largest flow of agriculture revenue in BC.[1]

This region, and the entire province, felt the economic ramifications of the global financial crisis that occurred in late 2008. Most industries in the goods-producing sector of the MSWDR’s economy saw employment losses. This included the construction industry, as building-permit applications early in the year declined to half of the number at the same time in the previous year.[2]  On the services-producing side of the economy, overall employment numbers changed little in 2009, although there was a slight upturn near the end of the year.

In 2009, results for economic indicators for the MSWDR were generally negative, with the unemployment rate peaking around 7.5% in July and August. In Metro Vancouver, the unemployment rate began to climb in January 2009, reaching its apex in the summer months, and showing little sign of change in the last half of the year. The number of persons on income assistance in Metro Vancouver also rose steadily, growing by 11.8% between December 2008 and December 2009.

However, as of early 2010, there are signs of a slow recovery. In the MSWDR the injection of visitors and money due to the Olympics and Paralympics boosted  business revenues in the tourism and food and accommodation sectors in the first quarter. Predictions of improved lumber and commodity prices, and greater demand worldwide means exports will modestly recover, benefiting manufacturers and exporters throughout this region and BC.[3]

In addition, the MSWDR’s technology sector continues to thrive, especially for innovators who specialize in products that capture both Canada and US-based customers. And, as we will discuss later in this report, there are still many major capital investments, both underway and proposed, that will inject more income into the provincial economy.

Footnotes

1. Chilliwack Economic Partners website, February 2010.
2. Economic Development Association of BC, Invest in BC, 2010.
3. Op cit., TD Bank Economics.