Alberta’s economic growth is expected to be strong in the coming quarters, says Alberta Central’s Chief Economist Charles St-Arnaud in a new report. There are three main reasons for this expected growth:
- The reopening of the economy
- Improved commodity prices
- Recovery in the hardest-hit sectors
As mentioned in the 2021 Alberta Central Economic Outlook and a recent blog post, This recovery is brought to you by the letter K, not all economic recovery has been equal as some sectors were held back by COVID-19 restrictions. With those restrictions now lifted, we can expect job gains as businesses re-open or expand their services. Commodity prices are also helping to improve revenue, with oil prices increasing almost 60% and agricultural product prices increasing by about 30% since the start of 2021.
The report also shows that although households across Canada have accumulated an estimated $150 billion during the pandemic, they may not be so eager to spend it all. In a recent survey by the Bank of Canada, respondents said they plan to keep 45% of their accumulated savings as a precautionary measure. They also said they will use 20% to repay debt or use as a down payment and 35% to increase spending on restaurants, travel and other social activities.
For more details including a housing market update, read the 2021 Q2 Quarterly Economic Summary here.
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