NEWS RELEASE
For Immediate Release 2008FIN0024-001846 Dec. 5, 2008	Ministry of Finance and Ministry responsible for the Olympics
SLOWER GROWTH PROJECTED BY ECONOMIC FORECAST COUNCIL

VANCOUVER – The possibility of a prolonged U.S. recession, continued turmoil in world financial markets and slowing demand for B.C. products are the primary reasons the B.C. Economic Forecast Council has lowered growth projections for the Province, Finance Minister Colin Hansen announced today. 

 

            “Based on recent global developments, Economic Forecast Council members have reduced their outlooks,” said Hansen. “However, B.C. remains in a strong position to weather the current economic downturn and the 2010 Winter Olympics are expected to provide a significant and well-timed boost to the provincial economy.”

 

            The average of the collected forecasts from the Economic Forecast Council now projects B.C.’s real gross domestic product at 1.3 per cent this year, down from the previous forecast of 1.4 per cent. For 2009, the forecast economic growth is expected to average 0.6 per cent, down from 1.3 per cent. Forecasts indicate growth is expected to average 2.7 per cent in 2010 and 2.6 per cent from 2011 to 2013.

 

            Members of the council note that government revenues will be negatively affected by a slowdown in the resource sector, and a prolonged U.S. recession would continue to hurt B.C.’s trade sector, especially forestry. 

 

            “B.C. has fared well given the current economic climate in much of the rest of North America,” said Hansen, following a meeting with members of the council. “Although we have seen a weakening of economic growth in the Province, we remain in a strong financial position, and B.C.’s growth projections are above those for North America as a whole.”

 

            During the meeting, members of the council discussed a broad range of economic issues including the ongoing recession in the U.S., the timing of its recovery, how it will affect B.C., the potential effectiveness of fiscal stimulus packages, and the economic impacts of the 2010 Winter Olympic Games.

 

            The Economic Forecast Council represents some of the most respected independent thinkers on economic forecasting in Canada. The council provides critical economic advice to the minister of finance in developing each year’s Economic 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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1 backgrounder(s) attached.
Media contact:	Rena Kendall-Craden Communications Director 250 361-5775
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