B.C. Economy Downshifts in 2018, But Solid Growth Likely to Continue

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  • The global economic backdrop has improved, which should help to sustain B.C.’s economic expansion over the next couple of years.
  • However, the underlying pace of economic and job growth in the province will slow in 2018-19.
  • A number of indicators already point to some moderation in economic activity.
  • The robust expansion in recent years means the economy is operating close to full capacity, with the limited availability of workers curtailing employment gains.
  • Higher interest rates and the suite of new government tax and regulatory measures affecting housing and mortgage financing are dampening home sales in urban markets.
  • There are heightened risks to the outlook, particularly for capital formation. A deteriorating policy environment and escalating intergovernmental conflict over the Trans Mountain pipeline expansion project are clouding the investment environment.