September 4, 2008

Economists see slowdown in British Columbia

VICTORIA

British Columbia’s high-flying economy is showing signs of gliding back to earth to join most of the rest of the country, as economic problems in the United States cut into traditional export and tourism markets, say economic experts.

They say the westernmost province is now facing a bumpy economic road ahead, but not a crash.

Economists who provide the B.C. government with economic-growth forecasts say they will deliver downgraded growth predictions for the B.C. economy when they meet next month with government finance officials.

“No one really anticipated the breadth and depth of the U.S. housing market contraction,” said Helmut Pastrick, chief economist at the Credit Union Central in Vancouver.

“My story is that certainly the developments in the North American economy are influencing my forecast,” he said.

“Obviously, the (B.C.) forest industry is facing very difficult conditions.”

Pastrick said he lowered his economic growth forecasts for British Columbia for 2008 to 1.5 per cent and 1.8 per cent in 2009.

Last February, he forecast three-per cent growth in 2008 and 2.9 per cent growth in 2009.

Canadian Press

Print | Email | Comment