Alberta’s economy is well positioned and will not struggle too much during the anticipated recession due to its natural resource industries and growing population, according to ATB Financial’s latest economic forecast. ."While Alberta is not experiencing a boom, the positive prospects for our oil and gas sector are providing a significant boost that will continue into 2023," said ATB Financial Deputy Chief Economist Rob Roach in a Wednesday press release. .The forecast said Alberta will see real GDP growth of 2.8% in 2023. .The forecast went on to say Alberta’s economy will manage because the province reached its highest level of oil production at 3.9 million barrels per day in September. It said oil prices are high enough companies have increased their capital spending plans. .The Alberta government was able to deliver a balanced budget because of high oil prices in February. .READ MORE: Alberta delivers balanced provincial budget 2022.This budget is the second time in more than a decade the Alberta government has brought it into balance. The Alberta government will be spending large amounts on increasing healthcare capacity and returning people to work. .“Oil prices will go up and down, but we’re looking to create more stability, more sustainability in Alberta’s income statement,” said Alberta Finance Minister Travis Toews..The forecast said the rising cost of living is affecting Canadians. While Canada’s inflation rate in October was 6.9%, it acknowledged it dropped from its 8.1% peak in June. .There are signs showing price growth is slowing and will return to the 2% target by 2024. Interest rates are expected to rise over 4% and stay around this number throughout the next year..Alberta’s favourable economic conditions helped to attract the largest number of interprovincial migrants of any other province between the second quarter of 2021 and the second quarter of 2022. The province added almost 60,000 people from other countries in 2022, the highest number on record..The Alberta government said in August the province is the best place in Canada to live, work, and raise a family, and a new campaign it launched to attract people will tell this story. .READ MORE: Alberta government launches new campaign to bring skilled workers to province.It launched the Alberta is Calling campaign in the Toronto and Vancouver market, aiming to attract skilled, educated, and motivated talent to consider moving their careers and future. .The campaign highlighted the many cost of living, career, and lifestyle advantages of life in the province. .The forecast said strong migration levels are expected to improve Alberta’s labour market and alleviate some of the staffing challenges. It expects Alberta’s unemployment rate to average 5.8% this year and remain around this level in 2023 and 2024.."Alberta will likely lead the country in growth next year, but Albertans will still feel the negative impact of sticky inflation, higher interest rates, and geopolitical uncertainty," said Roach.
Alberta’s economy is well positioned and will not struggle too much during the anticipated recession due to its natural resource industries and growing population, according to ATB Financial’s latest economic forecast. ."While Alberta is not experiencing a boom, the positive prospects for our oil and gas sector are providing a significant boost that will continue into 2023," said ATB Financial Deputy Chief Economist Rob Roach in a Wednesday press release. .The forecast said Alberta will see real GDP growth of 2.8% in 2023. .The forecast went on to say Alberta’s economy will manage because the province reached its highest level of oil production at 3.9 million barrels per day in September. It said oil prices are high enough companies have increased their capital spending plans. .The Alberta government was able to deliver a balanced budget because of high oil prices in February. .READ MORE: Alberta delivers balanced provincial budget 2022.This budget is the second time in more than a decade the Alberta government has brought it into balance. The Alberta government will be spending large amounts on increasing healthcare capacity and returning people to work. .“Oil prices will go up and down, but we’re looking to create more stability, more sustainability in Alberta’s income statement,” said Alberta Finance Minister Travis Toews..The forecast said the rising cost of living is affecting Canadians. While Canada’s inflation rate in October was 6.9%, it acknowledged it dropped from its 8.1% peak in June. .There are signs showing price growth is slowing and will return to the 2% target by 2024. Interest rates are expected to rise over 4% and stay around this number throughout the next year..Alberta’s favourable economic conditions helped to attract the largest number of interprovincial migrants of any other province between the second quarter of 2021 and the second quarter of 2022. The province added almost 60,000 people from other countries in 2022, the highest number on record..The Alberta government said in August the province is the best place in Canada to live, work, and raise a family, and a new campaign it launched to attract people will tell this story. .READ MORE: Alberta government launches new campaign to bring skilled workers to province.It launched the Alberta is Calling campaign in the Toronto and Vancouver market, aiming to attract skilled, educated, and motivated talent to consider moving their careers and future. .The campaign highlighted the many cost of living, career, and lifestyle advantages of life in the province. .The forecast said strong migration levels are expected to improve Alberta’s labour market and alleviate some of the staffing challenges. It expects Alberta’s unemployment rate to average 5.8% this year and remain around this level in 2023 and 2024.."Alberta will likely lead the country in growth next year, but Albertans will still feel the negative impact of sticky inflation, higher interest rates, and geopolitical uncertainty," said Roach.
