In 2026, key economic concerns for British Columbia include tariffs, investments, trade, and their impact on the housing market, according to Bryan Yu, chief economist at Central 1 Credit Union, speaking with 1130 NewsRadio.
Yu highlights the significance of the evolving trade relationship with the United States, particularly amid tariff threats from President Donald Trump. Sectors like forestry, steel, and auto industries are expected to bear the brunt of these developments, with potential implications for agriculture in Canada.
One of the major areas of focus is the upcoming review of the Canada–United States–Mexico Agreement (CUSMA), which governs free trade among the three countries. Yu anticipates a relatively stable environment with most goods remaining tariff-free across borders, despite concerns about renegotiation.
Beyond trade issues, global economic uncertainties in 2026 are expected due to factors like affordability challenges and geopolitical tensions such as the conflict between Russia and Ukraine.
An area of particular interest, especially in British Columbia, is the housing market. Yu predicts that interest rates will likely remain steady until mid-year, with possible increases towards the end of 2026.
Despite the economic challenges, Yu foresees a boost in investments in British Columbia, although the full impact may not be fully realized until 2027.