Alberta downturn worst for economic growth in decades, one of longest
CALGARY — A new report says Alberta’s current recession is expected to shrink the economy by more than double the average of the past four recessions.
The TD Bank report released Monday said it estimates Alberta’s economy will contract 6.5 per cent over 2015 and 2016, which would widely exceed the 2.7 per cent average retreat of previous economic downturns going back to the early 1980s.
The estimate came after TD tripled this year’s expected GDP decline to three per cent, after factoring in the Fort McMurray fires and a higher than expected drop in industry activity.
“Based on our revised forecasts, the 2015-16 recession is likely to go down in history as one of the most severe using the GDP benchmark,” TD wrote.