BC relies heavily on coal and lumber exports but an economist tells us that could be threatened because of the devaluation of China’s currency.
Lumber sales can be offset by more purchasing from the US right now but China is one of the biggest consumer of BC’s metallurgical coal. The commodity is already struggling on top of this.
“Devaluation in general by the Chinese currency should make it more expensive for Canadian exports,” explains Central 1 Credit UnionEconomist Helmut Pastrick
He says the Chinese economy has been under performing, and fall in the Yuan is being done to help exports there.
Pastrick says one positive thing may be people from China finding it more expensive to invest in BC real estate