Alberta could pull out of it’s worst recession in decades in the new year.
A forecast from the Conference Board of Canada says that the recovery could be modest, but Fort McMurray’s rebuild could add a .4 increase to Alberta’s GDP.
In the release, Associate Director of Provincial Forecasts, Marie-Christine Bernard, says the road to recovery won’t be easy for Alberta. Given the lower oil price environment, energy sector budgets are not expected to increase substantially over the next few years, capping the province’s economic growth prospects at around 2 per cent at best.
Even though OPEC countries have announced to cut supply this year, there remains a lot of oil in storage around the world that will keep the West Texas Intermediate oil price from going much above US $55 per barrel over the next year.
With the exception of Newfoundland and Labrador, all provinces will see their economy expand next year.