BC deficit to balloon to 12.5 billion

Jul 14, 2020 | 12:33 PM

Finance Minister Carole James says the impact of the COVID-19 pandemic has created the worst economic downturn in the province’s recent history.

In February, James was predicting a balanced budget.

On Tuesday, the minister presented figures that show B.C. is headed for a $12.5 billion deficit this year.

Other figures show:

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B.C.’s real gross domestic product (GDP) could decline by 6.8% in 2020
Job losses in the province have been significant, with 235,100 fewer jobs in June compared to February. Job losses are not expected to be fully recovered this year.
Retail sales may decline by 15.9% in 2020.
Housing market activity has been mixed. Homebuilding activity continues to be resilient. However, there has been a steep decline in home sales. The value of residential sales may decline by 27.6% in 2020.
BC government economic scenario. (Gov’t of BC/submitted)

B.C. began easing restrictions in mid-May and is now in Phase 3 of the restart plan.

James said elements of uncertainty could influence the depth and duration of the economic slowdown, including future COVID outbreaks in B.C. and elsewhere, the evolution of public health policies, a vaccine, and the responses of the public and businesses in terms of spending and investment.

“As those numbers really remind us, this could be the worst downturn experienced in our province in recent history,” James said.

by Kate Bouey

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