OPTIMISM RULES DESPITE RISK

Albertans feeling bullish about province’s economy, says premier

As the Calgary Stampede kicks off, Premier Rachel Notley says there’s a renewed feeling of optimism as Alberta recovers from recession, despite continuing mixed economic signals.

The provincial economy and the NDP government’s bottom line has been battered for the last two years by low oil prices, but forecasters are predicting Alberta will lead the country in economic growth in 2017.

Last year’s Stampede also followed hard on the heels of the massive Fort McMurray wildfire, one of the largest disasters in Canadian history.

Notley said there’s a different mood in 2017.

“I think it’s true. I think that there’s growing level of optimism among all people — business owners and job creators but just regular Albertans as well. People are looking forward to giving themselves permission to relax a bit this summer,” Notley told reporters as she prepared to ride in the Stampede parade.

The jobs report for June released Friday showed that Alberta had created 7,500 jobs.

The unemployment rate in the province dropped to 7.4 per cent from 7.8 per cent in May and from 7.9 per cent in June, 2016. Calgary meanwhile saw its unemployment rate dip from 9.4 per cent in May to 8.9 per cent.

But the shadow that continues to hang over the province are oil prices that have slid under US $45 a barrel, which raises question marks over both the economy and the government’s finances.

The NDP government — which is currently projecting $10.3 billion in red ink — received some not so sweet news Friday. Rating agency DBRS confirmed Alberta’s credit rating at AA ( high) but changed its long-term outlook for the province to negative, which “reflects the fact that Alberta continues to erode its low debt advantage through sustained deficit spending.”

The rating agencies’ verdict follows a string of credit downgrades for Alberta since April of 2016.

In a news release, the Wildrose Opposition noted that DBRS is warning of another credit rating downgrade if the government doesn’t show fiscal resolve in dealing with its debt and deficit issues.

“The NDP needs to get serious about how the endless string of downgrades and warnings will hurt working Alberta families,” said party leader Brian Jean in the statement.

Wildrose also pointed out that while jobs are up, the number of full-time jobs dropped by 11,000 between May and June

Notley said no one is saying that “we are at the perfect spot” but “we are slowly turning the corner.”

“Is the job done? Absolutely not. We still have to work very, very hard on creating jobs for those people who are still looking for jobs. But we have turned a corner from where we were before. We are seeing jobs being added to the economy. We are seeing growth.”

Mayor Naheed Nenshi said he also sees a more upbeat mood in the city after “a rough couple of years here in Calgary.”

“I’m seeing a lot of optimism. I wouldn’t say it’s unbridled optimism. Certainly we’re uncertain about the future but things are better than they’ve been and I think most people feel that now.” jwood@postmedia.com

I think it’s true. I think that there’s growing level of optimism among all people — business owners and job creators but just regular Albertans as well.