A few statistics on their own and one would think everything was gravy in British Columbia.
The Ministry of Finance revised their estimate for a budget surplus in the upcoming fiscal year to $1.9 billion from $264 million.
Furthermore, we remain the most creditworthy of the Canadian provinces as the only one to hold the esteem AAA rating from both Moody’s and S&P.
Obviously the dark cloud though, and no secret is what’s next for the booming real estate sector that propelled this province during years of economic malaise across the rest of the country.
According to estimates, foreign investors will still be a significant contributor to the increased provincial revenues through the new tax; and above that, the uncertainty that even the finance minister spoke in predicting its market impact and the associated flows of capital.
As this province has become largely dependent on the real estate sector, it exposes what shouldn’t be a surprise of a key vulnerability in these forecasts.