As real estate goes, so goes the B.C. economy.
The Conference Board of Canada is forecasting at least two more years of slowing growth ahead for the province amid a cooling real estate market.
The Ottawa-based think tank’s latest provincial outlook, released Wednesday (February 27), estimates real GDP growth in B.C. will fall from 2.6% in 2018 to 2.5% this year.
The Conference Board said that downward trend will continue into 2020 with real GDP growth projected to fall to 2.4%, “despite ongoing megaprojects in the energy sector.”
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Last fall LNG Canada announced its five partners had made a final investment decision on the $40-billion project to be based out of Kitimat, B.C.
The project has two main components: the LNG plant and marine terminal in Kitimat, and the $4.8-billion Coastal GasLink pipeline, which is being built by TransCanada Corp. (TSX:TRP) to bring natural gas from northeastern B.C. to Kitimat.
Meanwhile, the province is coming off tremendous economic growth — charting at an average of 3.2% from 2014-17 — fuelled largely by demand for real estate.