New figures from Statistics Canada show the British Columbia economy shrank in 2008, performing below the national average. The drop came despite past assurances from government finance ministers that the economy was growing.
“In British Columbia, [Gross Domestic Product] fell 0.3 percent, its first decline since 1982,” said an April 27 newsletter from StatsCan. That was worse than most other provinces. Nationally the GDP grew an average of 0.5 percent.
The drop is in contrast with the picture painted by successive B.C. Liberal Party finance ministers. Presenting the 2008-2009 budget, her last before resigning, Carole Taylor said the government was forecasting 2.4 per cent growth for 2008.
The province would fare better in bad times than the United States and the rest of Canada, she said at the time.
And here's what current Finance Minister Colin Hansen had to say in Nov. 2008 when the province, we now know, was already in recession: “British Columbia, according to all the leading economists, can still anticipate positive economic growth through this very difficult time.”
The 2009-2010 budget, which Hansen presented in February, was based on a projected GDP drop of 0.9 percent.
Hansen did not return a call by posting time.
According to StatsCan, only Ontario had a greater drop in GDP than B.C. in 2008, with a shrinking of 0.4 percent. Saskatchewan's economy led growth, with a 4.4 percent surge.
“British Columbia's forestry products were hit by falling export demand,” noted StatsCan. “Logging production fell 18 percent, while wood products manufacturing declined 21 percent.” Personal spending was also down, it said.
The Tyee reported in March 2008 that despite signs the province was entering a recession the government was doing little to acknowledge the severity of the situation, let alone to address it.
Andrew MacLeod is The Tyee’s Legislative Bureau Chief in Victoria. Reach him here.
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Frank
3 years ago
The Liberal future
Gee, if 2008 was that bad I wonder how bad 2009 will be?
On the bright side, with no economic growth our emissions should go down so that should make our jobless province happy.
G West
3 years ago
Has anyone this drop in GDP
Has anyone brought this to the attention of the Minister of Finance?
If they have, has he changed his tune?
gamedev
3 years ago
This should be headline news tonight
But it won't be, I'm sure. Of course they can cover it up with the Van Dongen resignation....oh, wait, that doesn't look good either....better lead with the Convention center flooding....hmm, no, that won't do....we'll have to go with the duplication of police records, forced by the BC government, at an extra cost of 9 million a year....doh! Wait, now I have the answer "Carol James seen with scuffed left shoe! She must resign!!!"
Luke Skywalker
3 years ago
3 Canadian Economic Powerhouses...
And the GDP fell by relatively similar amounts:
Ontario: -.4%
BC: -.3%
AB: -.2%
The economy during the last quarter of 2008 must have fallen over a cliff in terms of economic contraction.
spartikus
3 years ago
How can this be?
But but but...we are assured BC is well positioned to weather the economic crisis.
Frank
3 years ago
gamedev
The lead story will be "A well known environmentalist says BC's GDP fell because of NDP's stance on the carbon tax"
Skywalker
3 years ago
Mark my words
One massive fudgit budget on the horizon.
de Falla
3 years ago
Look Out BC
StatsCan is also reporting that retail sales for BC in February are -9.1% year over year and -1.3% from the previous month. Yet Budget 2009 projected growth of 1.3% for this year. The assumptions provided in the budget suggest a $25 million value for each 1% change in this indicator. Given the position Campbell took last week on maintaining the existing deficit forecast, expect more cuts as these retail sales numbers work their way through the Treasury Board process.
brg61
3 years ago
New budget for '09
The feb. budget was a smokescreen; a pre-election tease. With the news of this decline, expect to see a radical new budget with severe cuts if Campbell is given a third term.
Rod Smelser
3 years ago
RIght brg61
One of Premier Gordon M. Campbell's exemplars, almost an idol at times, is former Premier William R. Bennett, well-known after he departed public life for his adroit trading in Doman shares.
People should ask if 1983 is the real fiscal policy and the election strategy of this BC Liberal Govt. Will there be a radical "restraint" budget this July, with Colin Hansen reprising the role once played by Hugh Curtis? Stay tuned.
Skywalker
3 years ago
Rod
Yes that is exactly what you can look forward to. The first shot came today with the layoff notices to park wardens.
Skywalker
3 years ago
Rod
Yes that is exactly what you can look forward to. The first shot came today with the layoff notices to park wardens.