Province Revises Economic Outlook

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B.C.'s  Finance Minister Carole Taylor says  while the economy remains strong in British Columbia, the  events happening in the United States have  encouraged the Ministry of Finance to  trim  its economic outlook for the balance of this year, and  2008 / 2009.

The 2007  budget  expectation for the economy had predicted growth of  3.1 % that has been trimmed back to 3% for the balance of this year,  and the forecast for 2008 has been  trimmed to 2.9%.

The  province is feeling the impact of the decrease in US. housing starts and the  low prices for lumber, however, the forecast predicts  an improved picture in the United States later next year, and  rising lumber prices.

Taylor says the  drop in pricing for natural gas  could change  at any time and the picture could improve.  But, to be prudent, Taylor says  expected revenue from that sector has been cut by  near $370 million .

The bottom line says Taylor is "Steady as she goes".  Minister Taylor says with the changes  ongoing in the United States, British Columbia  has been able to, so far, weather the storm "We cannot  say how long we can be sheltered from this,  so we are going to be  cautious."

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