B.C. economy to grow more slowly over next two years: Central 1 Credit Union

By Daryl Major
March 18, 2017 - 9:24am

A slowing housing market is being credited with a strong B.C. Economy, but not as strong as it could be.Credit: The Canadian Press

NANAIMO — The B.C. economy looks strong over the next two years, but not compared to previous years according to one credit union.

Bryan Yu, Central One Credit Union's senior economist, said the housing market is one of the biggest reasons why.

“We'll have fewer housing starts and that would lead to less residential investment activity. Add to that, will we see some weakness on the lumber as a result of the softwood lumber dispute."

The future depends on trade talks with the new administration in the United States. Yu said they'll watch softwood lumber negotiations closely.

"We do expect to see some negative impacts from the softwood lumber agreement and tariffs," he said.

Central One said B.C.’s economic growth is expected to rebound by almost half of a percentage point to 2.7 per cent in 2018 and 2019.

Yu said B.C.'s diversified economy and it's other trade markets should lessen the impact.

After a substantial 33 per cent surge in 2016, housing starts in B.C. are expected to tumble by 13 per cent this year.

“Household demand will remain the backbone of economic growth, but we will see further rotation towards government spending, trade and an increase in investment, as the contribution from the housing sector diminishes.”

 

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