British Columbia’s economy is expected to grow at a measured pace over the next two years, with projections of 1.4 percent growth in 2025 and 1.3 percent in 2026, despite ongoing global economic uncertainty and trade challenges. Strong consumer spending and steady residential construction have helped sustain growth, even as U.S. tariffs weigh on exports and business investment.
The province’s deficit for 2025-26 is forecast at 11.2 billion dollars, a slight decrease from earlier estimates. Revenue is higher than previously projected due to increased corporate and personal income tax collections, while overall spending has risen slightly because of refundable tax credits and additional costs for service delivery agencies, partially offset by lower wildfire expenses.
B.C. is investing 13.9 billion dollars in infrastructure projects, including schools, hospitals, housing, and transportation. While this is slightly lower than previous estimates due to timing adjustments, eleven major projects have been approved since the last quarterly report. Self-supported capital spending by Crown corporations has also been adjusted slightly.
Minister of Finance Brenda Bailey emphasizes that the province is focusing on strategic investments to create good jobs, diversify trade relationships, and maintain economic stability, while also working to improve government efficiency and manage costs in a challenging global environment. These investments are designed to strengthen B.C.’s economy and prepare it for future growth.
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