B.C. growth forecast drops for 2023 but deficit projection improves
Global financial pressures and Canada's inflation rate challenges are major contributing factors in a forecast of slower growth for British Columbia's economy.
Finance Minister Katrine Conroy said Tuesday that B.C.'s economy is now projected to grow by about one per cent this year, a dip from the forecast in September of 1.2-per-cent growth.
The slowdown is expected to continue in 2024, with the latest quarterly financial outlook from the Ministry of Finance forecasting economic growth of 0.7 per cent, Conroy told a news conference.
“We want to be prudent in our forecast and we know that's what the economic forecasters, the private forecasters, are predicting,” said Conroy.
The most recent data from Statistics Canada pegged the national inflation rate at 3.1 per cent, with B.C. at 2.7 per cent.
The budget's September deficit forecast of $6.7 billion has shown improvement, dropping by $1.1 billion, with this year's deficit now projected at $5.6 billion, she said.
Higher revenues of about $1.4 billion contributed to the reduced deficit projection, Conroy said.
The revenue boost came from more personal and corporate income tax from the Canada Revenue Agency and extra wildfire recovery money from the federal government.
The minister said costs for this year's wildfire budget have risen to $987 million.
Conroy, who will table the government's 2024 budget on Feb. 22, said employment growth in B.C. expanded by 1.4 per cent, while B.C.'s population grew by three per cent.
The New Democrat government introduced several initiatives in recent weeks aiming to increase housing stock and affordability, including restrictions on short-term rental accommodations, easing of local house-building permits and encouraging more growth in public transit areas.
People's budgets have been squeezed by global inflation and continued high interest rates make the already expensive cost of buying or renting a home more costly, she said.
“We're stronger when we work together,” Conroy said.
Conroy acknowledged the Ministry of Finance still expects high interest rates to weigh on the housing market, projecting a drop in housing starts from 47,400 units this year to 42,900 units in 2024.
She said her ministry is being “prudent” with its housing forecasts, but she and Housing Minister Ravi Kahlon are “a bit more optimistic.”
This report by The Canadian Press was first published Tuesday, Nov. 28, 2023.
CTVNews.ca Top Stories
'There's mom and dad's house': New video appears to show destruction of Jasper neighbourhood
Video posted to social media on Thursday morning appears to show the charred remains of a Jasper, Alta., neighbourhood.
LIVE UPDATES Multiple homes, businesses 'lost' to wildfire in Jasper National Park: Parks Canada
Officials from Parks Canada and Jasper say "multiple structures, including a number of businesses and homes, in and around the town of Jasper, have been lost" to wildfire in Jasper National Park.
Prince William's 2023 salary revealed in new report
Newly released financial reports show that William, the Prince of Wales, drew a salary of $42.1 million last fiscal year, his first since inheriting the vast and lucrative Duchy of Cornwall.
Alberta premier says a third, perhaps half, of all Jasper buildings destroyed by fire
Alberta Premier Danielle Smith says early reports indicate a third and perhaps up to half of all buildings in the historic Rocky Mountain resort town of Jasper have been destroyed in a wildfire.
Canada to bring home fewest Olympic medals since 2012, according to forecaster
Fewer Canadians are expected to reach the Paris podium than in the previous two Olympic Summer Games, a global data analytics company predicts.
Jennifer Aniston criticizes JD Vance for 'childless cat ladies' remarks: 'I pray that your daughter is fortunate enough to bear children'
Jennifer Aniston is criticizing JD Vance for comments he made in his past about women without children.
'Skibidi Toilet:' If you don't know what it is, you will
'Skibidi Toilet' is already an internet sensation and now its about to get even more exposure after the YouTube series is being developed for TV and film, according to a report by Variety.
NASA says no return date yet for astronauts and Boeing capsule at space station
Already more than a month late getting back, two NASA astronauts will remain at the International Space Station until engineers finish working on problems plaguing their Boeing capsule, officials said Thursday.
French sprinter will wear a cap during Olympic opening ceremony after hijab dispute is resolved
French sprinter Sounkamba Sylla will be allowed to participate in the opening ceremony at the Paris Olympics wearing a cap to cover her hair, an agreement reached with the French Olympic Committee after Sylla said she was barred because of her hijab.