Is B.C. heading for another lost decade? Recent weak economic performance points to repeat of disastrous 1990s

VANCOUVER, BC, Feb. 13, 2026 /CNW/ - Unfortunately for British Columbians, the 2020s are shaping up to be another lost decade--like the 1990s--based on similarly weak economic performance in a number of key areas, finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

"Many British Columbians may not remember the disastrous lost decade of the 1990s, but those who do will know it isn't an economic period they'd want to relive," said Livio Di Matteo, senior fellow at the Fraser Institute and author of Is British Columbia Headed Towards Another Lost Decade.

The study finds that B.C. is once again experiencing weak performance in several key economic measures, just as it did in the 1990s, including:

• Since 2020, inflation-adjusted per-person GDP growth--an important indicator of living standards--has averaged 0.4 per cent. The last time it was this slow in B.C. was the 1990s, when it averaged 0.2 per cent annually.
• The share of business investment in machinery and equipment has declined sharply from a peak of 28.2 per cent in 1998 to just 10.2 per cent in 2023.
• Total exports as a share of the provincial economy--a key driver of prosperity--peaked at 48.1 per cent in 2000 but declined to 37.5 per cent by 2023.
• Private sector employment growth has averaged just 1.3 per cent annually since 2020, while public sector employment growth has averaged 5.5 per cent annually and self-employment (an important measure of entrepreneurship) has actually declined.
• B.C. is projected to run deficits until at least 2027/28, with the provincial net debt rising from $71.3 billion in 2023/24 to $155.8 billion in 2027/28. The ratio of net debt to the economy (GDP) over this period is projected to rise from 17.4 per cent to 32.4 per cent.

"With five years to go, the decade is not yet a lost one for British Columbians, but the recent trends are not encouraging," Di Matteo said.

"Policymakers need to make a concerted effort to focus on pro-economic growth policies to avoid a repeat of the disastrous 1990s."

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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, Halifax and Montreal and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org

SOURCE The Fraser Institute

MEDIA CONTACT: Livio Di Matteo, Senior Fellow, Fraser Institute; To arrange media interviews or for more information, please contact: Mark Hasiuk, 604-688-0221 ext. 517, [email protected]