B.C.’s economic outlook has worsened since the year began – and the shadows of risk have lengthened, Central 1 Credit Union said Thursday.
The provincial economy is expected to grow by 2.4 per cent this year, down from the 2.9 per cent it had forecast in January, Central 1 said.
Next year should see economic growth of 2.8 per cent, down from the 3.1 per cent forecast earlier.
The European debt crisis, political squabbling in the U.S. over a debt ceiling, and the tsunami in Japan have led to a global slowdown that’s longer and deeper than expected, the umbrella body for credit unions in B.C. and Ontario said.
“Signs point to our recovery continuing but at a modest pace, with a higher risk of recession,” Central 1 chief economist Helmut Pastrick said. “We will grow at a faster pace when the U.S. economy gains momentum.”
A reviving U.S. appetite for B.C. wood products and natural gas will help push economic growth in B.C. to 3.5 per cent in 2013.
And that will empower it to stay at about that level through 2015, Central 1 predicted. But there’s a 30-percent chance the U.S. will slip into recession, Central 1 said.