British Columbia economy is 'resilient'

VICTORIA, British Columbia, Sept. 12 (UPI) -- British Columbia lowered its economic-growth forecast Friday but said the economy remained "resilient."

"British Columbia's economy is forecast to grow 1.7 percent this year and 2.3 percent in 2009, which shows that our economy remains resilient in the face of difficult external conditions," provincial Finance Minister Colin Hansen said in a statement.

In February, Canada's westernmost province forecast this year's growth at 2.4 percent.

"Looking ahead, the key to a strong economy is an environment which is attractive to investment and ready to weather the challenges," said Hansen, who is the minister responsible for the 2010 Winter Olympics in Vancouver.

The province's updated plan forecasts a $1 billion surplus for fiscal year 2008-09, $970 million higher than initially forecast.

The plan also forecasts revenues $1.2 billion higher than budget, due to improved corporate income tax revenues, natural gas royalties and bonus bid revenues from the sale of drilling rights.

Debt will drop to $6.3 billion, a level not seen since 1991-92, the plan forecasts.

"Increased surpluses provide choices for British Columbia -- choices that might include additional tax cuts, spending on social programs and debt reduction," Hansen said.

"As we put together Budget 2009, we'll be asking British Columbians for their ideas and input on what they want to see," he said.

An all-party committee of the Legislative Assembly will seek public input at meetings beginning Monday.