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ATB ECONOMIC FORECAST

Alberta economy continues to sputter

Sep 11, 2019 | 7:27 AM

CALGARY- The latest economic forecast for the province from Alberta’s government-owned bank is gloomy.

ATB Financial says it expects the economy to grow just under 1% this year.

It states insufficient pipeline capacity and a sluggish oil and gas sector has dampened job creation, consumer spending and construction activity.

ATB notes the number of unemployed is growing and the average unemployment rate over the first seven months of this year was 6.9%.

It also noted that the province’s export sector is being hindered by Chinese restrictions on key Canadian agricultural products such as canola.

“Alberta’s economy is facing challenges from all sides—from the lack of pipeline capacity to trade wars—which is why ATB is forecasting marginal growth this year,” says ATB’s Chief Economist Todd Hirsch. “At the same time, we are forecasting growth of 2% in 2020 assuming some of the transportation issues clogging up the oil patch will be resolved and investment in new production will increase.”

(The Canadian Press)