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
BREAKING Iran fires air defence batteries in provinces as explosions heard near Isfahan
Iran fired air defence batteries early Friday morning as explosions could be heard near a major air base near Isfahan, raising fears of a possible Israeli strike following Tehran's unprecedented drone-and-missile assault on the country.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
Nearly half of China's major cities are sinking, researchers say
Nearly half of China's major cities are suffering 'moderate to severe' levels of subsidence, putting millions at risk of flooding especially as sea levels rise.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.
Judge says 'no evidence fully supports' murder case against Umar Zameer as jury starts deliberations
The judge presiding over the trial of a man accused of fatally running over a Toronto police officer is telling jurors the possible verdicts they may reach based on the evidence in the case.
Health Canada to change sperm donor screening rules for men who have sex with men
Health Canada will change its longstanding policy restricting gay and bisexual men from donating to sperm banks in Canada, CTV News has learned. The federal health agency has adopted a revised directive removing the ban on gay, bisexual and other men who have sex with men, effective May 8.
Colin Jost names one celebrity who is great at hosting 'Saturday Night Live'
Colin Jost, who co-anchors Saturday Night Live's 'Weekend Update,' revealed who he thinks is one of the best hosts on the show.
Sports columnist apologizes for 'oafish' comments directed at Caitlin Clark. The controversy isn't over
A male columnist has apologized for a cringeworthy moment during former University of Iowa superstar and college basketball's highest scorer Caitlin Clark's first news conference as an Indiana Fever player.
'Shopaholic' author Sophie Kinsella reveals brain cancer diagnosis
Sophie Kinsella, the best-selling author behind the 'Shopaholic' book series, has revealed that she is receiving treatment for brain cancer.