Greater Vancouver’s Economy: Challenges and Opportunities

Greater Vancouver has long been celebrated for its global reputation as a hub for trade, innovation, and environmental leadership. However, the region faces significant economic challenges compared to peer cities worldwide. According to GVBOT’s Benchmarking Greater Vancouver 2024 Report, the city ranks 14th among 20 global peers in prosperity, struggling with low productivity and income levels. While the region performs well on certain metrics like the green economy, indicators such as housing affordability and transportation continue to lag, creating barriers for both residents and businesses.

Recent events have further strained the region’s economy and caused uncertainty. Strikes at the port and the Canadian rail system have severely disrupted supply chains, delaying shipments and driving up costs for businesses dependent on the smooth movement of goods. These disruptions have impacted local businesses and weakened the region’s reputation as a reliable trade gateway. The ripple effects of these strikes highlight the critical importance of infrastructure resilience in sustaining economic stability.

Beyond labour disputes, Greater Vancouver continues to grapple with structural challenges, including high living costs, limited housing availability, and a stagnant standard of living. Broader global pressures amplify these issues, such as inflation, rising interest rates, and geopolitical tensions. As businesses navigate this complex environment, concerns are mounting about the region’s competitiveness and long-term viability as a leading economic hub.

At our event with Tiff Macklem, Governor of the Bank of Canada, last month, he addressed the importance of preparing for economic shocks, stating: "The future looks more uncertain, and more prone to shocks than we would all like. We need to be prepared." His remarks emphasize the need for proactive strategies and collaboration among policymakers and business leaders to build resilience in the face of mounting economic pressures.

Political uncertainty has added further complexity to the national economic landscape at the federal level. Following Justin Trudeau announcing his plans to step down as Canada’s prime minister and leader of the Liberal party the opposition parties committed to triggering an election when Parliament resumes in March.

This uncertainty in Ottawa comes at a perilous time. With the challenges posed by another Trump presidency and significant domestic and global pressures, Canada needs focused leadership to steer our national economy back on track.

These challenges raise pressing questions for businesses: What role can the federal, provincial, and municipal governments play in ensuring economic stability? How can businesses adapt and find growth opportunities despite these uncertainties? Addressing these concerns requires coordinated efforts across all levels of government and active engagement from the business community.

These are some of the questions we aim to address at our upcoming Economic Outlook Forum 2025, presented by Scotiabank. This year’s edition of our annual forum will explore these critical issues, featuring insights from leading economists, industry experts, politicians and political commentators. 

Jean-François Perrault, Senior Vice-President and Chief Economist at Scotiabank will deliver the keynote address, offering expert analysis on what lies ahead for businesses navigating today’s complex market. 

You’ll also hear from the Honourable Brenda Bailey, B.C.’s Minister of Finance, as she shares timely updates on provincial financial strategies and the outlook for B.C.'s business community. 

The future is more uncertain than before the pandemic; the priority is not just seeing the light at the end of the tunnel but defining a clear path toward it.