Export Development Canada is predicting  B.C.'s export growth will take a step backward in the coming year.  The EDC says the decline in the forestry sector is to blame,  holding the overall export growth to 2% this year, and pushing it down by 3% in 2007.

"We continue to see a significant split in the province's performance,  with the forestry sector contracting while almost all other sectors continue to grow," said Stephen Poloz, Senior Vice-President of Corporate Affairs andChief Economist. "The importance of the forestry sector, however, will drag overall exports into negative territory in 2007."

The forestry sector accounts fo 40.7 % of B.C.'s  exports, while the energy sector  accounts for 22.9%.  The predictions are for the forestry sector's exports to slip another 2% this year, and  a full 4% next year.  The drop is a result of both the declining housing market in the U.S. and the high Canadian dollar.