Deloitte Forecasts 1.6% GDP Growth for B.C. in 2026 Amid Forestry Sector Challenges
Deloitte forecasts British Columbia's GDP growth at 1.6% for 2026, up from 1.4% in 2025, despite significant challenges in the forestry sector, which faces high tariffs and substantial job losses. Major companies like Interfor and Canfor have reported operational reductions and financial losses, impacting overall economic momentum. The province's growth is supported by federal project approvals, while Canada's national GDP is projected to grow by 1.5% in the same year.
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Deloitte projects a modest GDP growth of 1.6% for British Columbia in 2026, up from 1.4% in 2025, ranking it fourth in Canada. The province's growth is limited due to significant challenges in the forestry sector, which is facing 45% tariffs.
Interfor Corporation has announced operational reductions, and Canfor Corp. reported a $172 million loss in Q3 2025. Employment in the forestry sector has decreased by 23.9% from January to November 2025.
Despite hosting major projects like LNG Canada Phase 2 and the Red Chris Mine, the forestry sector's struggles hinder overall economic momentum. Deloitte attributes the expected growth partly to the B.C. government's push for federal support and the addition of two projects to the federal fast-track list. Nationally, Canada’s GDP is expected to grow by 1.5% in 2026 with stable labor market conditions.
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