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.

About Alberta Central
Alberta Central is the central banking facility, service bureau and trade association for Alberta’s credit unions.

Our innovative products and services, thought leadership and advocacy on priority issues advance the collective voice of the credit union system, as we work to increase awareness of the credit union difference. For Alberta Central, credit unions come first in everything we do. We will work to connect credit unions to the products, services and partnerships they need to be market leaders.

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