B.C.’s Economy Shows Resilience Despite Global Trade Volatility

December 8, 2025

B.C.’s economy is expected to grow at a measured pace despite instability and uncertainty in the global economy.

“Unjust and unpredictable trade policies have upended global relationships and shaken investor confidence across the world,” said Brenda Bailey, Minister of Finance. “We’re leaning into our strengths, like our natural resources and our skilled workforce, as we create opportunities for people and build the economic engine of Canada’s new economy.”

B.C.’s diverse economy and access to non-U.S. markets is expected to mitigate the effects of the ongoing global trade conflict over the medium term. Strong consumer spending and steady residential construction have supported economic growth this year. B.C. is projected to see economic growth of 1.4% in 2025 and 1.3% in 2026, as exports and business investment are negatively affected by U.S. tariffs.

“We’re undoubtedly seeing the impact of U.S. tariffs,” Bailey said. “We’re diversifying our trade relationships with new partners and approving major industrial projects to provide good jobs for people and economic security, no matter what the world throws at us.”

Deficit projected at $11.2 billion

The Province’s deficit for 2025-26 is projected to be $11.2 billion, a decrease of $390 million since the First Quarterly Report. Revenue is forecast to increase by $512 million, due mainly to higher than previously projected corporate and personal income tax revenues. Expenses are forecast to be $122 million higher than in the First Quarterly Report, due to higher spending for refundable tax credits and higher net spending by service-delivery agencies. This is partly offset by lower costs from wildfires.

“B.C. is not alone in dealing with higher costs and uncertainty in the economy. Our focus is on continuing to make strategic investments to grow our economy, while charting the path to balance with thoughtful, targeted decisions about reducing government inefficiencies,” Bailey said.

B.C. invests in infrastructure projects

• B.C. is projected to invest $13.9 billion in building taxpayer-supported infrastructure in 2025-26, including schools, hospitals, housing and transportation infrastructure.
• This is $763 million lower than reported in the First Quarterly Report, due mainly to timing changes for major projects in the health and transportation sectors.
• Eleven major projects have been approved since the First Quarterly Report.
• Self-supported capital spending by Crown corporations is $14 million lower than in the First Quarterly Report, primarily due to changes in the timing of ICBC, BC Lottery Corporation and Liquor Distribution Branch expenditures.

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