by Harvey Oberfeld
May 19, 2025
BC’s economy is in bigger trouble than many people realize.
The province’s GDP growth rate in 2023 was only 1.6% … down considerably from 3.8% in 2022; for 2024, it was projected to be even worse, only .08%; the unemployment rate in December 2024 was 6%, up from 5.6% the same month in 2023; the government deficit in the March Budget was forecast at $10.9 billion, up from the previous record deficit of $9.1 billion.; and, province’s debt was projected to reach $156 Billion by the end of the year.
And most of that happened pre-Trump!
“The government of British Columbia says if president-elect Donald Trump follows through with his promise of a 25 per cent tariff on Canadian goods once his presidency begins, it could result in the province losing about $69 billion by 2028,” the Vancouver Sun has reported. (You can read the full story here: https://www.cbc.ca/news/canada/british-columbia/trump-tariff-threat-bc-69-billion-1.7433240.)
And the Credit Ratings agencies are paying attention.
“Province of British Columbia Downgraded to “A+” from “AA” on Continued Record Deficits: Outlook Negative” read the headline on the S&P Global Ratings report in April. (Read the full report here: https://www2.gov.bc.ca/assets/gov/british-columbians-our-governments/government-finances/debt-management/bc-credit-rating-sp.pdf.)
“The negative outlook reflects that there is at least a one-in-three chance that in a more
uncertain economic environment, the province’s financial management will take insufficient
steps to ensure a fiscal consolidation path, leading to further weakening of B.C.’s
creditworthiness over the next two years,” the report warns global investors.
BC has to get its economy growing again … fast!
Bill 15: the Infrastructures Projects Act is one of the tools the BC government’s believes could do that.
The legislation “allows the provincial cabinet to fast-track approval of major public infrastructure projects, such as schools, hospitals, cancer centres, student housing and any other projects deemed “provincially significant,” like critical mineral mines, through an expedited environmental assessment process and easing of the permitting procedure,” the Vancouver Sun reported last week.
No doubt about it: BC needs investment and growth … billions of dollars worth to get the province through the Trump-era threats, tariffs and turmoil.
Many of these projects are badly needed, some well past due … and could create tens of thousands of jobs in BC, directly and indirectly.
However, many community groups, environmental organizations, municipalities, regional governments and First Nations worry “expediting” procedures by Cabinet Order could cut them out of the process.
They have a point.
Consultations with other levels of government, community and environmental groups are important.
I suspect a lot of them still on the drawing board have already been the subject of multiple discussions, reports, studies, meetings and negotiations.
Endless consultations, considerations, changes … and, yes, even attempted blackmail/shakedowns … can add huge costs and YEARS to major projects … making some of them (especially those where private investment is required) no longer viable.
Given the state of the economy, and the already-evident impact of Trump’s war against Canada, BC can little afford more excessive delays to cater to the demands of un-elected protestors, shakedown artists, or environmental terrorists.
Premier David Eby and his NDP government were elected to govern the province and stimulate BC’s flagging economy.
It’s time to get the job done!
Harv Oberfeld
