Alberta economy rebounding

NATIONALLY, CANADA BEATING PREDICTIONS

It’s not just the weather. Canada’s economy is also hot, beating experts’ predictions through the first half of the year.

There’s also good news here in Alberta, where new jobs are being created after two years of recession. The province’s agriculture, tourism and retail sectors have helped boost economic growth by three per cent.

And while lower-thanexpected oil prices have limited the energy sector’s growth, the impacts of Hurricane Harvey have already triggered higher gasoline prices across Canada.

Across the country, Statistics Canada reports, the gross domestic produce grew by 4.5 per cent during the year’s first six months. Household spending — a sign of consumer confidence — was a notch higher at 4.6 per cent.

“Canadian GDP is gangbusters,” commented Frances Donald, a senior economist for Manulife. Consumer spending is “a pillar of strength,” she said.

A senior economist at Desjardins, Jimmy Jean was equally positive.

“Make no mistake, those are extremely strong numbers,” he said. “It’s another very impressive performance for the Canadian economy.”

Closer to home, the chief economist for ATB Financial declared the 2015-16 recession is over.

Albertans have seen a gain of about 35,000 jobs since the start of the year, pointed out Todd Hirsch.

“We’ve actually seen Alberta’s economy post a modest rebound in 2017,” he said.

Alberta’s economy is recovering, he said, with less reliance on the oil and gas industry.

“The economy is evolving into one that is more diversified, and more typical of other Canadian provinces.”

Hirsch cited “pretty decent gains” in agriculture and agri-business as one of the sources of strength. The tourism industry is posting a record year, he added.

Improved retail sales and a steady home-building industry are also underpinning Alberta’s economic recovery, he noted.

The energy sector has been hiring again, Hirsch reported, but low prices over the summer tempered some energy companies’ plans.

“Drilling activity and hiring have picked up modestly, but growth in the sector remains tenuous and not likely to snap back to pre-recession levels anytime soon.”

— with files from The Canadian Press Follow @DMabellHerald on Twitter