Alberta to see modest growth: Conference Board

“Moreover, if all conditions are met, construction on the first multi-billion-dollar liquefied natural gas terminal could start in 2016, and that would be a game changer for the province, providing a considerable boost to the economy”, it said.

“Low oil prices, wage rollbacks and deep staffing and capital budget cuts in the energy sector have hurt the Alberta economy, sending it into recession”, the Conference Board said.

It’s positive news for a province, which since the decline of the energy sector, has hemorrhaged thousands of jobs.

An Ottawa-based think-tank sees growth in the forecast for Alberta.

Overall, Canadian economic growth is expected to pick up momentum, especially in trade-related sectors, thanks to stronger US growth and a weaker Canadian dollar that benefits export-related industries.

Manitoba is expected to be among the top provincial performers in 2016 and 2017, according to The Conference Board of Canada’s latest Provincial Outlook.

BMO also predicts this year’s decline will be around 1.5 per cent, larger the Conference Board’s estimate.

Modest gains in employment combined with an increase in the labour force resulted in a mild rise in unemployment in the second half of 2015 to 7.1 per cent. However, this only shifted the unemployment rate from a below-trend level to one that is close to its long-term average.

The province should post growth of two per cent in 2016, followed by a gain of 2.2 per cent the year after that.

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Additional reductions in energy investment expected in 2016 A large part of the economy’s subpar performance in 2015 was due to an estimated 30 per cent drop in spending by energy companies and support services in the wake of oil price shocks. The biggest driver will be the construction industry, the report said.

Saskatchewan’s energy-reliant economy is also expected to bounce back out of recession next year with two per cent GDP growth, while Newfoundland and Labrador’s economy is expected to shrink by 0.8 per cent.

View RBC’s new provincial factsheet for economic highlights from across Canada.