The Central 1 Credit Union says there's a higher risk that B.C. could slump into a recession as the global economy continues to slow down.
Spokesman Helmut Pastrick says while signs point to continuing recovery for B.C., the economy could stall enough to put the province into a recession.
The credit union's economic forecast has downgraded economic growth to 2.4 per cent from the previous forecast in January of 2.9 per cent.
Its forecast has also dropped the growth estimate for next year to 2.8 per cent from 3.1 per cent.
Pastrick says the B.C. economy will pick up when the U.S. economy gains momentum.
He says the decision by voters to reject the HST will boost consumer spending in the short term -- because fewer items are taxed -- but the long-term economy will see less business investment and lower productivity.
