CALGARY – Alberta's economy was hit by a rare combination of negative factors, but recovery is on the horizon, according to a new report from Canada West Foundation.
A Rough Patch: Alberta Economic Profile and Forecast, written by Senior Economist Jacques Marcil, says that while oil prices have begun to recover, lower employment, reduced investment and a still-struggling global economy mean that the news is more bad than good. According to Marcil, this downturn is an anomaly in Alberta's history: the combination of low energy prices and global recession.
“Alberta is being hit harder than in previous recessions,” says Marcil. “In past economic slowdowns, either the energy industry kept Alberta growing while the national economy was struggling, or the energy industry took a hit while the national economy stayed the same. The one-two punch of global recession and plunging energy prices mean that Alberta will be hit worse than the rest of Canada this year.”
Economists currently predict that the United States, the largest market for the Alberta energy industry, will begin to recover in 2010. While it is not known how dynamic this recovery would be, if it does take place it will be an important first step towards economic recovery in Alberta.
“Many signs point to a rebound in energy prices, which will be of great benefit to Albertans,” says Marcil. “However, last year's contraction, the first since 1986, came as a bit of a shock to them.”
Canada West Foundation is a leading source of strategic insight, conducting and communicating nonpartisan economic and public policy research of importance to the four western provinces and all Canadians.
To download a copy of A Rough Patch, click
here.
For more information or to arrange an interview, please contact:
Jamie Leong-Huxley
Communication Manager
Canada West Foundation
403-700-9535
communication@cwf.ca
