Oil to help Alberta, Saskatchewan recover

Oil production will help Alberta and Saskatchewan recover from recession and lead Canadian provinces in economic growth this year, predicts the Conference Board of Canada (CBC).

Oil production will help Alberta and Saskatchewan recover from recession and lead Canadian provinces in economic growth this year, predicts the Conference Board of Canada (CBC).

The group’s Provincial Outlook: Spring 2017 says Alberta will have the fastest economic growth among the provinces, with an increase in real gross domestic product of 3.3%.

Alberta’s economy has contracted during the past 2 years.

“Nonconventional oil production in the province will see a big increase this year thanks to new capacity coming online, while energy investment is expected to make a comeback this year and next,” CBC said in a press release.

Improvements in labor markets, consumer demand, and housing also will help Alberta’s economy this year.

Saskatchewan and British Columbia will have GDP growth of 2.5% this year, tying for second place.

Saskatchewan will emerge from recession after drilling recovered last winter and oil production increases.

British Columbia’s forecast growth rate will be down from 3.7% in 2017 because of a housing slowdown and forest-industry struggles.

The study projects GDP growth of 2.3% in Ontario, 2.1% in Manitoba, and 1.8% in Quebec.

Aging populations are limiting growth in labor supply and hampering economies in the Atlantic provinces, according to CBC.

Newfoundland and Labrador will be the only province in recession this year as the economy contracts by 3%. CBC expects oil production from the Hebron project to help the province “bounce back strongly” next year (OGJ Online, Jan. 4, 2013).

The CBC projects 2017 GDP growth of 0.5% in Nova Scotia, 1% in New Brunswick, and 1.8% in Prince Edward Island.

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