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British Columbia’s economic recovery is expected to continue despite floods and fires

The government does not need to pay attention to the need to spread the recovery more evenly, experts advised Treasury Minister Serena Robinson.

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British Columbia’s series of climate crises — the first fires and droughts, now floods — has hit some households particularly seriously under the surface of the state’s surprisingly strong economic recovery.

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The backlash was highlighted by a Friday employment report from Statistics Canada, when British Columbia’s Finance Minister Selina Robinson met with the Economic Forecast Council, the state added employment to the economy for the fifth straight month, and the unemployment rate was high. It dropped to 5.6% in November.

A committee of 13 private sector economists predicts that BC’s economy will grow by an average of 5.3% this year and another 4.2% in 2022, following the 2020 COVID-19 recession. doing. Catastrophic flood.

But that growth is not shared equally. This is one of the challenges Robinson faces in incorporating feedback from the Forecast Council to create a budget for 2022-23.

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Christine Bergeron, Chief Executive Officer of Van City’s Cooperative Banking, said: “They had to borrow this summer, and this time when the floods forced them to flee the wildfires.”

It goes without saying that this will give people less capital to rebuild, according to Bergeron, and will do “better” rebuilding in climate-resistant homes.

Robinson added a second element to this year’s Economic Forecasting Council. In a meeting with a panel of experts, we will advise on how to incorporate environmental and social factors into these economic forecasts.

Bergeron’s advice was that the government needed to make sure that the recovery BC was experiencing was not uneven. The greatest exposure to these climate effects is actually the inability to build climate-resistant, energy-efficient homes. “

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Robinson said reality is “a top priority for our government” to deal with this year’s fire and cleanup from the current floods.

“We must certainly recognize that climate change is here and adaptation is absolutely necessary,” Robinson said.

Despite the floods that devastated agriculture and communities in the Fraser Valley along the Nicola, Coldwater and Kokihara rivers, the better news is the broader economic recovery available for assistance.

Economists, including Canada’s leading bank, Central 1 Credit Union, and British Columbia Business Council economists, forecast climate change to be more variegated in economic growth, along with unknowns from the Omicron variant of COVID and the high levels of impact in British Columbia. I mentioned it as one of the risks to. Housing costs.

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“There are more challenges going forward, but the work we’ve done so far is on the right track and provides a solid foundation for responding to pandemics and recent floods,” Robinson said in a statement. Shows. “

Robinson added that the government will use forecasts with feedback from the Economic Council and will be used by a second group, now considered the Environmental Society and Governance, or the ESG Council, to draft the next budget. .. Robinson aims to use government spending to expand the economy and work on “climate change, reducing poverty and inequality, and promoting reconciliation with indigenous peoples.”

One of the things Robinson didn’t reveal was an early estimate to correct the damage left by the catastrophic floods.

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Opinions of the Economic Council are divided on the severity of the damage to the economy this year, farmers still count losses, and forestry companies shut down factories due to limited transportation connections. ing.

“I think it’s really important not to guess what it will be,” Robinson said. Experts warn that repairs are “expensive”. We’ve seen both pictures and I think we’re aware of that. “

“I think it’s also important to recognize that the government is in a really good position to rebuild better and more elastically,” she added.

depenner@postmedia.com

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British Columbia’s economic recovery is expected to continue despite floods and fires

Source link British Columbia’s economic recovery is expected to continue despite floods and fires

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