QUICK SUMMARY
British Columbia's economy remains less affected by the U.S. trade war, with fewer job losses reported compared to other provinces, according to economist Bryan Yu. However, he warns that the province is not immune to future impacts, particularly in the forestry sector and real estate market.
British Columbia currently experiences fewer job losses due to the U.S. trade war, according to Bryan Yu, chief economist at Central 1 Credit Union. The province's economy benefits from diversification, relying less on exports and more on services and tourism. Despite this, Yu warns that the forestry sector could face challenges as U.S. demand leads to higher prices for Canadian products. He also highlights the real estate market's precarious situation, describing it as approaching a recession with buyers hesitant to enter the market. Statistics Canada reported a national unemployment rate rise to 6.9% in April, with the manufacturing sector feeling the strain of tariffs. The Canadian economy added 7,400 jobs, surpassing expectations, but the unemployment increase indicates underlying issues. Yu notes that temporary jobs related to the federal election may obscure the broader job loss picture across Canada. He anticipates that the Bank of Canada may need to cut interest rates to address the economic impact of tariffs.