Aluminum price to average 6% higher in 2024 on strong demand: Fitch
Analysts also raised its 2024 aluminum price forecast from $2,400/tonne to $2,450/tonne to reflect these expectations.
By Emma Crawford Hampel, Business in Vancouver
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@EmmaHampelBIV
The economy in British Columbia has seen modest growth over the past two years, but 2014 will be a good year for the province, according to a March 19 RBC Economics study.
RBC forecasts real gross domestic product (GDP) growth of 2.1% in 2014, compared with 1.5% in the past two years.
“British Columbia’s economic performance last year had some bright spots that will be key drivers for provincial growth in 2014,” said RBC senior vice-president and chief economist Craig Wright. “Chief among them is export gains, which will continue and likely spill-over to domestic industries this year.”
Merchandise exports grew by close to 7% last year, due to increased exports to the United States (up 12%) and China (up almost 15%). Exports increased in several sectors in B.C., including:
A strengthening U.S. economy and further market penetration in China will boost exports in 2014.
“Sales abroad will fire up B.C. resource industries like forestry and mining, but will spread benefits to other sectors ranging from manufacturing to business service industries,” Wright said.
In addition, he said the gains seen in the housing sector last year will have the effect of bolstering confidence in 2014. This will lead to increased household spending, one of the biggest economic constraints last year in B.C.
The job market will benefit from these positive factors, and RBC anticipates unemployment to drop to 6.4% in 2014 from 6.6% last year. This will further drive household spending.
Spending in the area of liquefied natural gas (LNG) is not expected to intensify until 2015, the report said, as a result of LNG tax rules announced in the province’s budget in February.
