A weakening U.S. economy and a high Canadian dollar are among the factors that will have a negative impact on the province's economic growth next year, according to the Economic Forecast Council.
The council forecasts that B.C.'s real GDP will fall to 3.1% in 2007 from a previous prediction of 3.4%. It added that economic growth in 2008 will drop to 2.9% from a previous forecast of 3.3%.
A decline in exports and manufacturing shipments caused by a high Canadian dollar and falling demand for lumber and natural gas will continue to have a lingering impact on B.C.'s economy, the council said, as will further deterioration of the U.S. economy, volatile commodity prices, the high Canadian dollar and persistent labour shortages in the construction sector.