Real Economic Growth

Know the Facts

Restoring investor confidence does not mean instant prosperity. However, a reputation for strength and stability positions Alberta for positive and long-term economic growth.

The recent economic crisis drastically changed the global economic landscape. In Canada, hardship was evident from coast-to-coast, even in Alberta, which some economists had previously considered almost bullet-proof.  A steep drop in business capital spending in Alberta’s energy sector had a direct impact on the oil and gas industry and also a depressing impact on other sectors of economy.

In 2009 Alberta’s jobless rate hit a 13 year high. The oil and gas, construction and manufacturing sectors were hardest hit, with unemployment rates peaking at 9.7 percent, 12.9 percent, and 10.3 percent respectively. High unemployment and a slow recovery negatively affected consumer spending.

However, in 2011, business capital spending has increased and things are looking up. A recent Bank of Montreal report predicts that Alberta will record 3% economic growth in 2011 and again in 2012, one point higher than the national average. It also reports that unemployment in Alberta was down to 5.5% in 2011. 

Economic growth is tied to improving Alberta’s competitiveness,  diversifying our sales opportunities, and removing domestic policy constraints that inhibit exports.

The full report can be found here:

http://www.bmonesbittburns.com/economics/forecast/prov/ProvincialOutlook.pdf