B.C. could be in for a 'mild recession,' economic forecaster says
While food prices go up, economists expect B.C. housing sales to slow and prices to fall, a combination that one expert says could bring a "mild recession."
Derek Burleton, the deputy chief economist, for TD said he expects B.C.'s economic growth will be close to zero, something that brings with it anxiety about potential job losses and the continuing increase of the cost of living.
"I think, we may see a mild recession," Burleton told CTV News. Adding, the province is "not looking at anything too severe – but it won’t feel that good."
Economic forecasters met with Finance Minister Selina Robinson in Victoria Monday to look at the province's financial outlook for 2023. In a statement, Robinson says B.C.'s position is "steady" although growth is expected to be slow.
"We're entering this period of slower growth and challenging global economic times in a strong position to continue supporting people," she wrote, saying projected growth for 2023 is 0.4 per cent down from an anticipated 2.7 per cent.
Speaking to reporters, she hinted more help may be coming those who have less of a cushion to absorb higher interest rates and continued inflation.
"The people who are lower income feel the squeeze more because it's about housing, it's about food. So supporting them, (economic forcasters) recognize, is a valuable tool," explained Robinson.
Economists believe housing prices may come down, but won't necessarily become affordable.
In recent weeks, disability advocates and the BC Greens have called on the government to increase assistance rates.
MLA Adam Olson said people on disability assistance are living thousands of dollars below the poverty line. He participated in the economic forecast meeting and said several experts took note of recent government spending.
"We did hear from economists here who basically cautioned against 'Eby bucks," Olson said, using the phrase to refer to the more than one billion dollars in relief measures announced by the new premier
Economists warn this year's anticipated five billion dollar surplus won't repeat next year. Prompting some debate about whether now – when the province is flush with cash – is the right time for an election call.
On Wednesday, Eby will announce changes to his cabinet.
Opposition finance critic Peter Milobar noted the province's election law which states the next general voting day will be in October 2024.
"But if the premier decides to be a political opportunist with a bit of a surplus then we'll be ready for that election as well," Milobar told CTV News.
When asked by reporters if a snap election call was in the cards David Eby has repeatedly said no. His predecessor, John Horgan, said the same for months, before changing his mind and sending voters to the polls two years earlier than scheduled.
CTVNews.ca Top Stories
DEVELOPING Man sets self on fire outside New York court where Trump trial underway
A man set himself on fire on Friday outside the New York courthouse where Donald Trump's historic hush-money trial was taking place as jury selection wrapped up, but officials said he did not appear to have been targeting Trump.
Mandisa, Grammy award-winning 'American Idol' alum, dead at 47
Soulful gospel artist Mandisa, a Grammy-winning singer who got her start as a contestant on 'American Idol' in 2006, has died, according to a statement on her verified social media. She was 47.
She set out to find a husband in a year. Then she matched with a guy on a dating app on the other side of the world
Scottish comedian Samantha Hannah was working on a comedy show about finding a husband when Toby Hunter came into her life. What happened next surprised them both.
On federal budget, Macklem says 'fiscal track has not changed significantly'
Bank of Canada governor Tiff Macklem says Canada's fiscal position has 'not changed significantly' following the release of the federal government's budget.
'It could be catastrophic': Woman says natural supplement contained hidden painkiller drug
A Manitoba woman thought she found a miracle natural supplement, but said a hidden ingredient wreaked havoc on her health.
Young people 'tortured' if stolen vehicle operations fail, Montreal police tell MPs
One day after a Montreal police officer fired gunshots at a suspect in a stolen vehicle, senior officers were telling parliamentarians that organized crime groups are recruiting people as young as 15 in the city to steal cars so that they can be shipped overseas.
Vicious attack on a dog ends with charges for northern Ont. suspect
Police in Sault Ste. Marie charged a 22-year-old man with animal cruelty following an attack on a dog Thursday morning.
The Body Shop Canada explores sale as demand outpaces inventory: court filing
The Body Shop Canada is exploring a sale as it struggles to get its hands on enough inventory to keep up with "robust" sales after announcing it would file for creditor protection and close 33 stores.
Tropical fish stolen from Beachburg, Ont. restaurant found and returned
Ontario Provincial Police have landed a suspect following a fishy theft in Beachburg, Ont.