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June 21st, 2005, 06:53 PM
Abbotsford economy is Canada's fastest-growing
Gross domestic product grew by sizzling 6.7 per cent last year
Michael Kane
Vancouver Sun
Tuesday, June 21, 2005
Abbotsford enjoyed the fastest-growing economy in Canada last year, with job gains matching skyrocketing population growth, according to a study released Monday.
The gross domestic product of the Abbotsford metropolitan area grew by a sizzling 6.7 per cent last year, compared to 3.9 per cent for British Columbia as a whole, the Conference Board of Canada said.
The study's author forecasts the city's growth will slow this year to a meagre 0.2 per cent, but conceded it will be stronger if a surge in construction is sustained.
"We are forecasting another strong year of population growth,"Greg Sutherland, an economist at the Ottawa-based Conference Board, said in an interview.
"If the housing is there to match it and the employment is there to match it, there is a lot of upside potential."
Abbotsford's population grew by 2.5 per cent last year to 160,000 and is expected to surpass 170,000 within four years.
In the first five months of this year, the city issued building permits worth $148 million, almost matching the total for the whole of 2004, said Jay Teichroeb, economic development manager.
"Permits are up quite dramatically for residential, commercial and agricultural," Teichroeb said. "It looks like better growth this year than the Conference Board is anticipating."
Mayor Mary Reeves said construction and population are increasing and there is no evidence of a slowdown. She welcomed the study as "exciting news for British Columbia" and confirmation of Abbotsford's status as the economic hub of the Fraser Valley.
The study shows total employment in the Abbotsford area increased by 6.3 per cent last year, which pushed personal income growth by a "remarkable 9.6 per cent" and boosted retail sales by 11.9 per cent.
Although non-residential construction was weak, housing starts increased for the fifth year in a row, feeding growth in the finance, insurance and real estate services sector.
This year the $24-million Mt. Lehman Road interchange upgrade and the $6.8-million expansion of the Abbotsford International Airport will support growth in non-residential construction.
Economic growth is also being fuelled by expansion at airport-based Cascade Aerospace, the aircraft maintenance, repair and overhaul operation that is the city's largest private sector company with about 600 employees. Cascade added 100 skilled jobs in January and is planning to add another 100-120, said Linda Thomassen, marketing manager.
One cloud on Abbotsford's horizon is a shortage of development land. Jake Siemens, president of the Fraser Valley Real Estate Board, said the business community is hopeful that the Agricultural Land Reserve will release 920 acres contiguous to the city's existing urban boundary, mostly near the airport.
Teichroeb said development land is needed to ensure that job growth keeps pace with residential growth over the next 20 years while minimizing the need to commute outside the city.
mkane@png.canwest.com
ABBOTSFORD'S RED-HOT ECONOMY:
It's all systems go in this Fraser Valley city, according to a new study:
- In the first five months this year, Abbotsford issues building permits worth $148 million -- almost the total for 2004.
- Population up by 2.5 per cent, to 160,000.
- Employment up by 6.3 per cent, pushing personal income growth by 9.6 per cent and boosting retail sales by 11.9 per cent.
Ran with fact box "Abbotsford's Red-Hot Economy", which hasbeen appended to the end of the story.
© The Vancouver Sun 2005
Gross domestic product grew by sizzling 6.7 per cent last year
Michael Kane
Vancouver Sun
Tuesday, June 21, 2005
Abbotsford enjoyed the fastest-growing economy in Canada last year, with job gains matching skyrocketing population growth, according to a study released Monday.
The gross domestic product of the Abbotsford metropolitan area grew by a sizzling 6.7 per cent last year, compared to 3.9 per cent for British Columbia as a whole, the Conference Board of Canada said.
The study's author forecasts the city's growth will slow this year to a meagre 0.2 per cent, but conceded it will be stronger if a surge in construction is sustained.
"We are forecasting another strong year of population growth,"Greg Sutherland, an economist at the Ottawa-based Conference Board, said in an interview.
"If the housing is there to match it and the employment is there to match it, there is a lot of upside potential."
Abbotsford's population grew by 2.5 per cent last year to 160,000 and is expected to surpass 170,000 within four years.
In the first five months of this year, the city issued building permits worth $148 million, almost matching the total for the whole of 2004, said Jay Teichroeb, economic development manager.
"Permits are up quite dramatically for residential, commercial and agricultural," Teichroeb said. "It looks like better growth this year than the Conference Board is anticipating."
Mayor Mary Reeves said construction and population are increasing and there is no evidence of a slowdown. She welcomed the study as "exciting news for British Columbia" and confirmation of Abbotsford's status as the economic hub of the Fraser Valley.
The study shows total employment in the Abbotsford area increased by 6.3 per cent last year, which pushed personal income growth by a "remarkable 9.6 per cent" and boosted retail sales by 11.9 per cent.
Although non-residential construction was weak, housing starts increased for the fifth year in a row, feeding growth in the finance, insurance and real estate services sector.
This year the $24-million Mt. Lehman Road interchange upgrade and the $6.8-million expansion of the Abbotsford International Airport will support growth in non-residential construction.
Economic growth is also being fuelled by expansion at airport-based Cascade Aerospace, the aircraft maintenance, repair and overhaul operation that is the city's largest private sector company with about 600 employees. Cascade added 100 skilled jobs in January and is planning to add another 100-120, said Linda Thomassen, marketing manager.
One cloud on Abbotsford's horizon is a shortage of development land. Jake Siemens, president of the Fraser Valley Real Estate Board, said the business community is hopeful that the Agricultural Land Reserve will release 920 acres contiguous to the city's existing urban boundary, mostly near the airport.
Teichroeb said development land is needed to ensure that job growth keeps pace with residential growth over the next 20 years while minimizing the need to commute outside the city.
mkane@png.canwest.com
ABBOTSFORD'S RED-HOT ECONOMY:
It's all systems go in this Fraser Valley city, according to a new study:
- In the first five months this year, Abbotsford issues building permits worth $148 million -- almost the total for 2004.
- Population up by 2.5 per cent, to 160,000.
- Employment up by 6.3 per cent, pushing personal income growth by 9.6 per cent and boosting retail sales by 11.9 per cent.
Ran with fact box "Abbotsford's Red-Hot Economy", which hasbeen appended to the end of the story.
© The Vancouver Sun 2005