Increasing pipeline capacity, resolving trade disputes key to Alberta economy in 2020: ATB Financial

Dec 12, 2019 | 12:00 PM

The newest Alberta Economic Outlook released by ATB Financial shows our province’s real GDP is forecast to grow slightly higher—0.9 per cent—in 2020.

ATB Financial says Alberta’s economy should get some help from increased oil production, pipeline construction, an uptick in natural gas prices, a strong tourism sector and ongoing population growth. However, they say this growth depends on progress being made in expanding oil pipeline capacity and toward resolving international trade disputes.

“With construction of the expansion of the Trans Mountain pipeline finally underway and the Enbridge Line 3 project moving forward, things are looking up at least a little for Alberta’s beleaguered oil patch,” said Todd Hirsch, vice-president and chief economist at ATB Financial. “Despite this, Alberta continues to swim upstream against a current of external economic challenges such as the Chinese ban on Canadian canola, the trade war between the U.S. and China and ongoing opposition to new pipelines.”

ATB’s Economic Outlook, released today, analyzes how our economy is performing and provides insight into where it is heading.

Key findings of the latest ATB Financial Alberta Economic Outlook, released Thursday, include:

christopher gardner

New principal named at The Brick Learning Centre in Ponoka

3h ago

Contract decision

Red Deer city council to make decision on future of ambulance services on May 12

4h ago

comfort for victims and many more

Lacombe Police welcome 'Rally' the support dog

5h ago

– The price of Alberta’s natural gas will go up over the next few months but won’t do much to reverse the sector’s low growth

– Retail sales are down and unlikely to recover by the end of the year due to the sluggish economy and high consumer debt

– Both residential and non-residential construction spending remains low despite a pick-up in activity in the third quarter

– Alberta’s unemployment rate is well above the national average and is forecast to remain high

– Despite the Chinese government lifting its ban on Canadian meat, Alberta farmers continue to be challenged by the country’s canola ban, a difficult harvest and soft prices

“If global trade relations improve, we should see some growth in our manufacturing sector,” said Hirsch. “Other bright spots include tourism and the tech sector but 2020 will still be a slow year for the Alberta economy as oil and gas investment remains constrained by limited transportation capacity.”

Hirsch will be in Red Deer next month for the latest Red Deer and District Chamber of Commerce Speaker Series Luncheon. He will be sharing his perspective on trends, challenges and opportunities that are top of mind for Red Deer’s business and community leaders.

The luncheon goes January 14, 2020 at the Holiday Inn & Suites – Red Deer South – Gasoline Alley. Tickets are available online or by calling 403-347-4491.

(With file from media releases)

by rdnewsNOW staff

Increasing pipeline capacity, resolving trade disputes key to Alberta economy in 2020: ATB Financial

What's Trending