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VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 4, 2015) - British Columbia will lead Canada in economic growth this year, according to the BMO Blue Book released today by BMO Capital Markets Economics and BMO Commercial Banking.

Much like the U.S. Federal Reserve's Beige Book, the BMO Blue Book combines the expertise of BMO's economists with information on current business conditions provided to BMO's commercial bankers by local businesspeople.

"Business momentum continues to be strong with our commercial clients investing into businesses and expanding into new markets," said Mike Bonner, Senior Vice President, BC and Yukon Division, BMO Bank of Montreal. "The low interest rate environment and the continuation of significant foreign investments into Vancouver and other parts of the province, including recent M&A activity in healthcare, are providing significant growth opportunities for our clients."

"Economic growth remains sturdy in British Columbia, and is expected to lead the provincial pack in 2015," said Robert Kavcic, Senior Economist, BMO Capital Markets. "Real GDP is expected to expand 2.6 per cent this year, in line with the pace recorded in 2014, and leading the country for the first time in 10 years."

Mr. Kavcic noted that firm U.S. demand and a weak Canadian dollar should offset the slowdown in China and uncertainty in the mining sector.

Additionally, the housing market continues to strengthen with mortgage rates currently at historic lows. "Sales across the province hit the best level in more than five years in February; and while early-year demand was helped by mild weather, the underlying strength looks real," stated Mr. Kavcic. "That said, Vancouver still faces an elevated number of completed but unoccupied units on the market - mostly condos; however, that continues to trend downward. As a result, new residential construction activity will likely remain relatively stable as current supply is absorbed."

Mr. Bonner added that demand from the new Canadian investors market - primarily China - continues to grow. With that, the market for commercial real estate remains stable and demand for agricultural properties continues to grow as these buyers look to export value-added agricultural products to China. Additionally, across the boards the province is seeing positive indicators for strong years ahead in agriculture, with crops weeks ahead of last year.

Non-energy exports are growing at a solid clip, with forestry benefiting from a weaker currency and solid U.S. housing starts. Meanwhile, employment was up just 0.5 per cent year over year in the first quarter, largely because of weakness in the public sector and construction. However, the unemployment rate is a relatively-low 5.8 per cent, and interprovincial migration has turned positive.

"We are thrilled to see our client's confidence return to pre-recession levels," added Mr. Bonner. "BMO's team of experts is here to help customers in the region make decisions that boost productivity, enable them to expand into new markets and make strategic investment decisions that will propel growth and drive success."

The full BMO Blue Book can be downloaded at www.bmocm.com/economics.

About BMO Financial Group

Established in 1817, BMO Financial Group is a highly diversified financial services provider based in North America. With total assets of approximately $672 billion as of January 31, 2015, and more than 46,000 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, Wealth Management and BMO Capital Markets.