Chief Economist Helmut Pastrick, guest speaker at Kimberley Business Expo

As the keynote speaker, Helmut Pastrick spoke about the global economy and its impact on BC and the Kootenays.

Helmut Pastrick, Chief Economist for the Central 1 Credit Union and Kevin Wilson, EDO of City Kimberley at the 2nd Annual Business Expo. — Photo courtesy Kootenay Business

As the keynote speaker at the Kimberley Business Expo, Helmut Pastrick, Chief Economist for the Central 1 Credit Union spoke about the global economy and its impact on BC and the Kootenays.

“The global economy is in its slowest growth phase since the great recession of 2008,” said Helmut Pastrick. “Largely due to the downturn in China.  A couple of years ago Chinese officials wanted to cool the country’s growth.”

The one bright spot is the US economy—though it is happening in fits and starts, their economy is growing and grinding away. There is a lot of pent up demand. Housing starts, for example, are now over one million though half of what is considered normal in the US.  Low interest rates are helping fuel more building. Metals, copper and oil prices are low and probably will remain that way for several more years, he said.

BC is doing moderate growth, while provinces like Alberta and Newfoundland are in recession.  Overall Canada is facing a relatively weak growth phase. Our lower Canadian currency should spur more exports.  Positive benefits include a noticeable uptrend in tourism and travel; as well, the TV and film industry is doing very well. Forestry products should do better than mining in the near short term.

Locally (Kootenays) the decline of steel production in China has resulted in less demand for metallurgical coal, so we have seen shutdowns and layoffs in the coal sector as a part of lower commodity demand worldwide. The domestic housing market is stable. In time, these things will sort themselves out and it helps that the entrepreneurial spirit is alive and well and a driving force in the region, Pastrick explained further.

He also stated that over the last several quarters there has been a net migration back to BC from Alberta.

The 2nd Annual Kimberley Business Expo was held at the Kimberley Conference Centre on Thursday October 15th.