Alberta Facing A Downhill Battle For Their Economy

Due to the recent economic viewpoint from ATB Financial, Alberta’s GDP is likely to shrink down to 1.9 percent this year. They have already gone through a shrinkage, as this follows a four percent decrease in the year 2015. It seems like the prediction made by the bank, that there won’t be any chance of the province expecting a recession in 2015, turned out to be false. In the year 2015, during the month of October, ATB was planning on boosting back their economic outlook for 2016, however, it doesn’t turn out as how they have planned, leaving them in despair.

Due to the Fort McMurray fire outbreak, the oilsands facilities in Alberta was inoperational for a month, this resulted in about 30 million barrels of foregone production as it was stated in the report; loosing the industry up to $1.6 billion of their revenue followed by a reduction in investment, causing the retail sales as well as a feeble labour force, which has made the economy of the province to despondent and to face another year of difficulties.

The rate of unemployment in this province is likely to increase and go above eight percent during the summer, as ATB anticipates. The economy will also follow through and become weakened, making the retail and housing markets to weigh down continuously. The report stated; “However, barring a major global economic event later this year, a modest rebound in 2017 is likely, stability in the energy sector and a lift resulting from the rebuilding efforts in Wood Buffalo should bring growth close to two per cent.”