Oilpatch recovery to boost Alberta, Saskatchewan growth, says Conference Board

Ontario is forecast to slow to 2.3 per cent in 2017 thanks to a slowing housing market in the southern part of the province, while Quebec will advance by 1.8 per cent on consumer spending boosted by tax cuts and job creation. Manitoba is to post 2.1 per cent growth.

Nova Scotia’s outlook is forecast to advance by just 0.5 per cent this year, while New Brunswick’s GDP growth is expected to hit 1.0 per cent and Prince Edward Island is to rise to 1.8 per cent on tourism and manufacturing sector.

“The difficulties in the resources sector are slowly dissipating and helping Alberta and Saskatchewan emerge out of recession. However, the turnaround is still in its early stages and a full recovery will take time,” said Marie-Christine Bernard, associate director of the provincial forecast for the board.

“Economic prospects are also improving across the country, but continued weakness in business investment—both in and out of the resources sector—could hurt economic growth in all provinces down the road.”

At the Alberta legislature Monday, Finance Minister Joe Ceci called the forecast “good news.”

“It shows that jobs are returning, confidence is returning to this province (and) recovery is in process,” said Ceci.

It was a sharp contrast to last week, when the Alberta government was hit with another credit downgrade. S&P Global Ratings reduced Alberta’s rating two notches, from AA to A-plus.

S&P cited concerns with provincial debt it expects will reach $94 billion by 2020.

Ceci said S&P’s recommendation for tax hikes or billions of dollars in cuts would not serve Albertans well as it digs out from financial problems caused by low oil prices.

“I like our plan,” said Ceci. “I think Albertans like our plan.”

The Canadian Press

by Canadian Press

Oilpatch recovery to boost Alberta, Saskatchewan growth, says Conference Board

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