Cooling real estate market to hamper B.C. economy next two years, says think tank

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.