The Alberta Treasury Branch (ATB) is out with a new economic forecast for the province.
The ATB bullish forecast is predicting stronger than expected growth for the Alberta economy citing increases in consumer spending, high employment, and record setting population growth. They are predicting real GDP growth in Alberta to hit 2.7 per cent in 2023, but then cool to between 2.0 and 2.2 per cent in 2024.
The outlook by ATB notes a remarkable turnaround for Alberta’s energy sector from the lows experienced during the pandemic. They say rising energy investment and production is a major factor driving Alberta’s real GDP growth ahead of the national average this year and next. They also expect biofuels, petrochemicals, hydrogen, and investments in emissions reduction to become medium term growth sectors for the economy.
“Alberta’s economy has weathered formidable storms, including the tumultuous oil price crash of 2014-15, market access hurdles in 2019, and the unprecedented challenges of the 2020 pandemic,” says ATB Financial Chief Economist, Mark Parsons.
“The province’s economy has recovered and is now firmly in expansion mode.”
The report also notes that over 200,000 people have moved to Alberta over the past year – the highest number on record. ATB expects migration to Alberta to remain moderate into next year while continuing to spur consumer spending and increase demand for housing.