December 7, 2015 2:34 pm
Updated: December 7, 2015 4:06 pm

Alberta to see modest growth despite low oil prices, says Conference Board

WATCH ABOVE: While the loonie is trading at an 11-year low, and oil continues its slide, the Conference Board of Canada says we should start seeing a rebound as we head into 2016. Global’s Jill Croteau reports.

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CALGARY – The Conference Board of Canada says Alberta should see modest economic growth next year despite persistently low oil prices.

It predicts the province will see real GDP growth of 1.2 per cent in 2016 after the economy shrank by 1.2 per cent this year.

READ MORE: Calgary post-oil plunge – uncertainty and opportunity

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The Conference Board said low oil prices led to a 15.2 per cent drop in energy investments this year and will mean $11 billion less in the province’s economy by the end of next year.

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.

British Columbia is anticipated to lead the country with 3.6 per cent growth in 2016, thanks especially to strong construction and housing sectors.

Manitoba is forecast to be the second-fastest growing province with 2.5 per cent growth, while Ontario’s economy is projected to grow by 2.3 per cent.

Prince Edward Island and New Brunswick are both expected to see modest growth of 1.6 per cent, while Nova Scotia is expected to see 2.3 per cent growth, in part due to the federal shipbuilding contract for the navy.

READ MORE: Oil crash not a repeat of 1985, says University of Calgary report

© 2015 The Canadian Press

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