The Conference Board of Canada thinks Alberta’s economic outlook for 2017 is positive.
Conference Board of Canada chief economist Craig Alexander said it’s a turning point for the province.
“Economic growth is likely to resume, but we need to also keep the prospects for growth in the context of this is clawing the Alberta economy out of the hole that we’ve had the last two years,” Alexander said on the Alberta Morning News.
“We think that this year we will see growth resume and probably come in around 2.8 per cent and, in fact, the Conference Board is a little more optimistic than he numbers the government is using right now in terms of growth around 2.4 per cent.”
A big part of Alexander’s economic forecast is oil.
“We do think oil prices are going to average about $55 this year. We’re a little under $50 at the moment. We do think we’re going to see a little bit of an increase, but the more important thing is that the resource sector has had time now to adjust their cost structures and re-balance to the new reality.”
Alexander said it normally takes three to five years for the full adjustment process to take place after the initial oil price shock. (djs)