Alberta set for continued recession this year
Non classé - 1 juil 2014Alberta is likely to have a deeper than expected recession this year before wildfire reconstruction spurs windows10productkey.org a rebound in 2017, according to figures in a new Conference Board of Canada report.
The province’s gross domestic product (GDP) is expected to drop by two per cent in 2016, the result of fallout from the Fort McMurray fire as well as the pullback in drilling and capital investment because of weak oil prices, says a quarterly provincial outlook released Monday.
The estimate is a drop from the conference board’s previous outlook last winter, which projected Alberta’s economy would only contract by 1.1 per cent.
Although the province is foreseen to have Canada’s worst drop in GDP, well below the projected national 1.5 per cent GDP increase,Cheap Jerseys from china the situation is likely to improve next year, boosted by all the work required 400-051 on the 2,400 buildings damaged or destroyed by the fire.
GDP should go up by 2.5 per cent next year, including a 0.4 per cent assist from reconstruction, which would be the fourth best result in Canada.
“Current crude oil prices are by no
means a clarion call for Alberta producers, but we expect layoffs and cuts to capital budgets to ease in the coming windows10productkey months, laying the foundation for a modest recovery next year,” the report says.
“As displaced residents return to their Fort McMurray homes, as oil production resumes, and as rebuilding gets under way, we expect only a small negative impact on the economy for 2016 as a whole and we foresee a positive impact in 2017.”
British Columbia, fuelled by a booming domestic economy and a red hot housing market, is expected to lead the country this year and next by posting annual three per cent economic gains.
Meanwhile, the latest figures from Statistics Canada show Alberta’s unemployment rate rose last month to 7.8 per cent from 7.2 per cent in April and the total number of hours worked dropped by 5.1 per cent, the largest monthly decline in three decades.
The declines coincided with the northern wildfires, www.cheapjerseys13.com which closed most businesses in the area, Statistics Canada said.
Edmonton’s unemployment rate E05-001 was unchanged at seven per cent, compared to 8.1 per cent in Calgary.
The Edmonton region has added about 30,000 jobs in the past year, while the province lost 54,000 jobs overall during the same period.
Alberta is likely to have a deeper than expected recession this year before wildfire reconstruction spurs a rebound in 2017, according to figures in a new Conference Board of Canada report.
The province’s gross domestic product (GDP) is expected to drop by two per cent in 2016, the result of fallout from the Fort McMurray fire as well as the pullback in drilling and capital investment because of weak oil prices, says a quarterly provincial outlook released Monday.
The estimate is a drop from the conference board’s previous outlook last winter, which projected Alberta’s economy would only contract by 1.1 per cent.
Although the province is foreseen to have Canada’s worst drop in GDP, well below the projected national 1.5 per cent GDP increase, the situation is likely to improve next year, boosted by all the work required on the 2,400 buildings damaged or destroyed by the fire.
