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British Columbia's Provincial Fiscal Outlook Shows Increased Deficit, Rising Debt, BMO Says

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The Canadian province of British Columbia released its first-quarter fiscal update on Monday, providing an overview of the current fiscal outlook, according to BMO Capital Markets in a note.

The FY26/27 deficit is now forecasted at CA$13.8 billion, roughly CA$450 million above the initial estimate. This rise was primarily due to increased wildfire expenses and higher-than-anticipated claims for refundable tax credits, although stronger-than-expected tax revenues added an additional CA$900 million, BMO wrote in a Monday note.

The provincial deficit is expected to be about CA$500 million deeper in each of the subsequent two years, said the bank.

Economic forecasts for 2026 were revised downward due to softer housing and labor markets, although the outlook for subsequent years remains largely unchanged, excluding recent US tariffs and the Canadian countermeasures, added BMO.

This fiscal year, taxpayer-supported debt is projected to be about 30% of gross domestic product and is forecasted to grow to 37% by FY28/29, according to the bank.

What else is happening in International?

International

Taiwan's Regular Earnings of All Employees Rise 3.32% in July

Taiwan's average regular earnings of all employees rose 3.32% year on year in July to NT$49,491, according to data released by the Directorate General of Budget, Accounting and Statistics on Monday.The average regular earnings of all employees include full-time employees with Taiwan nationality, part-time employees and industrial migrant workers.The total number of payroll employees increased by 87,000 from the previous year to 8.6 million at the end of July.The average regular earnings of full-time employees with Taiwan nationality increased by 3.67% year on year to NT$52,528 in July.From January to July, the average monthly regular earnings for all employees was NT$49,054, higher by 2.9% from a year earlier.

Taiwan Weighted
International

China's Retail Sales Growth Slows to 0.4% in August

China's retail sales of consumer goods grew 0.4% year over year to 3.982 trillion yuan in August, according to data from the National Bureau of Statistics released Tuesday.The pace of growth was softer than the 0.6% expansion recorded in the previous month. It missed the consensus forecast of 0.7% growth tracked by Investing.com.Sales in urban areas rose 0.2% year over year to 3.446 trillion yuan, while rural retail sales edged up 1.6% to 536.7 billion yuan.For the first eight months of the year, retail sales in China rose 1.1% year over year to 32.8 trillion yuan, easing from the 1.2% growth in the January-July period.

Shanghai Composite^SZSE
International

Australia's Total Spending Rises in August Due to Higher Essential Costs, NAB Says

Australia's total spending rose 1.1% in August due to higher essential costs rather than heightened demand, according to NAB's Consumer Spend Trend released on Tuesday.Total spending climbed 8.7% over the year, while monthly growth was 0.6%, excluding fuel.The report pointed to increasing pressure on households, with the end of the temporary fuel excise discount, combined with higher fuel prices, NAB Head of Australian Economics Gareth Spence said.Non-discretionary spending was up 2.2% in August, driven by a 12% jump in fuel and a 3.2% rise in utilities and telecoms.Meanwhile, discretionary spending was still growing, but momentum had slowed, Spence said.Discretionary spending rose 0.4%, with household goods broadly flat and personal goods down 0.2%.

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