After a small setback due to the third wave of COVID-19 infections and the associated restrictions, recovery restarted in the summer with solid gains in employment and economic activity in client-facing industries, says Alberta Central’s Chief Economist Charles St-Arnaud in a Q3 Quarterly Economic Summary.
A severe drought in Western Canada and unseasonably cool weather in the centre of the country have led to a temporary setback in economic activity, as the economy reopens and the hardest-hit sectors by COVID-19 continue to recover. As the summer comes to an end, some areas in Canada are battling a fourth wave of infection, however, the impact will be smaller than in previous waves. The high vaccination rate and imposition of proof of vaccination schemes are likely to allow most of the economy to avoid stringent restrictions.
In Alberta, a more acute fourth wave of infection means that the economy will be more affected than in the rest of the country. As such, real-time economic indicators for the province are weaker than elsewhere in the country.
Read the Q3 Quarterly Economic Summary for more information on commodities, inflation, the labour market and the housing market in July, August and September.