Alberta’s economy continues to do well, but growth will be weaker this year according to a report released by the Conference Board of Canada Tuesday.
“Following growth of 4.9 per cent in 2017, Alberta’s economy is forecast to expand by 1.9 per cent this year,” the report said. “But, with the recent rally in oil prices, there are upside risks to the forecast.”
The report said a lack of investment in the energy sector is a contributing factor.
“Pipeline capacity issues are cooling oil producers’ appetite for new investment and drilling was also slightly down in the last winter season,” the report continued.
The forecast price of oil, in particular, West Texas Intermediate which is averaging at US$70 a barrel could be an “upside risk to the forecast,” the report said.
Nationally, the report said economic growth is expected to be slower.
“Weaker economic growth is forecast across the country, with only British Columbia, Prince Edward Island, Ontario and Quebec expected to see growth above 2 per cent this year,” said Marie-Christine Bernard, director of provincial forecast for the Conference Board of Canada in a news release Tuesday.