Canada’s economy is diverse and dynamic enough to achieve, in time, a new balance of economic growth.
That’s according to Bank of Canada’s Deputy Governor Lynn Patterson to the Edmonton Chamber of Commerce yesterday.
Paterson shared some of the bank’s insights into the adjustment Albertans and the rest of the country are facing in the wake of low commodity prices.
She says one long-term assessment revealed the country’s resource sector would shrink while the non-resource sector would expand.
However, Patterson says the resource sector is still in play as the bank expects to see new efficiencies, further innovation and shifts in investments.
She says in the near term, the risks to oil prices appear to be balanced. but she says the medium term outlook is leaning upward.
Patterson says the significant reductions in oil investment since late 2014 could leave future increases in global demand unmet, putting upward pressure on prices and drawing investment back into the sector.