B.C. growth forecast drops to one per cent for 2023, but deficit projection improves

British Columbia's economy is forecast to grow one per cent in 2023, a drop from the 1.2 per cent predicted earlier by the Ministry of Finance.

The ministry's second quarterly report also forecasts slower economic growth for next year of 0.7 per cent.

But the budget's September deficit forecast of $6.7 billion has improved by $1.1 billion, with this year's deficit now projected at $5.6 billion.

The ministry says in a statement the province's economy is being impacted by slow growth globally and high interest rates in Canada.

It says employment growth has expanded by 1.4 per cent, while B.C.'s population grew by three per cent.

Finance Minister Katrine Conroy says people's budgets have been squeezed by global inflation, while high interest rates are making the already high cost of buying or renting a home more expensive, but the government will continue supporting people by helping to ease the pressure of everyday costs.