B.C. economy to grow moderately in 2012
By Contributor
The B.C. Economic Forecast Council has lowered its growth projections for the province this year and next in light of the worsening global economy.
On average, the council expects B.C.’s GDP growth to be 2.2 per cent in 2011, down from its 2.7 per cent forecast in January of this year. The council also predicts B.C.’s GDP will grow 2.2 per cent in 2012 and average 2.7 per cent in 2013-16.
British Columbia’s Ministry of Finance forecast in the September Quarterly Report that the provincial economy would grow 2.0 per cent in 2011 and 2.3 per cent in 2012. A new government forecast will be released with Budget 2012.
The majority of council members predict B.C. will outperform the Canadian average in 2012 and encouraged the government to continue the pursuit to balance the budget in 2013-14.
At their meeting, council members discussed their predictions for the B.C., Canadian and U.S. economies, including the risk of a double-dip recession, as well as the Euro-zone sovereign debt crisis and the potential slowdown in Asia.
The Economic Forecast Council includes some of the most respected independent economic forecasters in Canada. The 14-member council’s mandate — as determined by the Budget Transparency and Accountability Act — is to provide economic advice to the Minister of Finance in developing each year’s budget and fiscal plan.
Individual council members’ growth forecasts for B.C.’s real gross domestic product are included in the attached backgrounder.
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