Several drivers of growth in the B.C.'s economy will likely peak in the next few years, according to RBC Economics' January provincial outlook.
The report estimated B.C.'s real GDP growth would be around 2.5% in 2008 and 3% in 2009.
It estimated that public capital spending, which has increased since 2003, likely peaked last year at $5.5 billion spent on various non-residential construction projects.
The report said that, while annual spending is likely to remain around $5 billion, the stimulus to the economy might not be as strong as it has been, as B.C. faces persistent labour shortages and slowdowns in its forestry and energy sectors.
International exports fell 5.7% last year, due largely to reduced deliveries to the U.S. because of the U.S. housing recession and declining lumber and natural gas prices. According to the study, wood products accounted for 24% of the province's exports; natural gas and coal accounted for 19%. The report said that softening of both sectors is cause for concern.
Pulp, however, was the exception to the grim export picture. Global demand for pulp continues to be strong despite an increase in global supply capacity.