B.C.’s GDP growth will be 2.2% rather than the 2.7% forecast in January 2011, according to a revised BC Economic Forecast Council projection.
The council further forecast that B.C.’s economy will grow 2.3% in 2012 and then an average of 2.7% annually through 2016.
In releasing the forecasts, the province re-committed to balancing the budget in 2013-14.
“British Columbia is still expected to continue to outperform most other North American economies,” Finance Minister Kevin Falcon said in a statement. “Our plan remains to balance the budget as committed.”
Falcon added that the province will continue to monitor the global economic situation.
“The situation is fluid, and if it deteriorates further we will evaluate the global repercussions then,” he said. “There is an increased risk of a worldwide double-dip recession, and both the province and the council agree we have to take a very cautious, prudent approach when putting together our next budget.”
In September, RBC lowered its 2011 growth projections for B.C. to 2.1% from an earlier forecast of 2.6%. (See “RBC lowers growth forecast” – BIV Business Today, September 12).
Jenny Wagler
@JennyWagler_BIV