ATB Financial forecasts modest economic growth in Alberta this year
Posted February 15, 2018 10:31 pm.
Last Updated February 15, 2018 11:20 pm.
This article is more than 5 years old.
CALGARY – Alberta’s Crown-owned bank is forecasting moderate economic growth this year, but no big drop in the province’s jobless rate.
ATB Financial is projecting GDP will increase by 2.8 per cent.
Chief Economist Todd Hirsch says that is better than the recession years of 2015 and 2016, but not as strong as 2013 and 2014 before the economic downturn.
Hirsch says the unemployment rate is expected to come down gradually from 7.9 per cent to about 6.8 per cent.
He says U.S. oil prices have strengthened, but Alberta isn’t benefiting because there isn’t enough pipeline capacity to get the province’s heavier crude to markets.
ATB says non-energy industries such as agriculture, tourism and technology are expected to perform well this year.
Housing prices are projected to improve, but housing starts will remain the same or decrease slightly.
“We’re expecting 2018 to be okay for the housing market, probably some modest price increases as some optimism comes back,” he said Thursday.
“However, pulling against that is changes in the mortgage lending. That is going to restrict some buyers from getting into the market or it’s going to force them to look at lower priced properties.” (CTV Calgary)
