Alberta's economy set to grow but facing significant downside risks
TORONTO, March 12, 2015 /CNW/ – Alberta’s economy is expected to grow at an anaemic pace in 2015, as persistent energy sector weakness and an unfolding spill over into consumer confidence prompted RBC to revise its 2015 real GDP forecast significantly lower – to 0.6 per cent from 2.8 per cent forecasted in December. According to the latest Provincial Outlook
released today, RBC expects growth will pick up slightly to 1.1 per cent in 2016.
“Alberta saw a dramatic turn of events in recent months, as it became clear that the steep drop in crude oil prices since mid 2014 would have profound adverse repercussions for the province’s energy sector,” said Craig Wright, senior vice-president and chief economist, RBC. “The initial position of strength in the economy is likely sufficient to keep the province in growth territory in 2015 though the risks of a recession can’t be dismissed.”
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