The wheels of economic growth are in motion in Alberta as the province reclaims its position as one of Canada’s fastest growing economies, says the latest Economic Outlook report released today by RBC Economics.
The report forecasts Real GDP growth of 4.3 per cent in Alberta this year which will lead the country and economic growth of 3.8 per cent in 2012, which will be behind Saskatchewan’s nation-leading 4.7 per cent.
Alberta’s economic growth this year will be its best showing since 2006 and an increase from the 3.7 per cent hike in 2010.
“Strong demand for Alberta’s bitumen continues to spur tremendous activity in the province’s various oilsands projects,” says the report. “This activity more than makes up for weakness in natural gas and declining conventional oil output.
Alberta’s oil and gas extraction producers are in midst of a $24.2-billion spending binge this year, boosting their outlays by nearly 18 per cent relative to 2010, according to intentions expressed in Statistics Canada’s Private and Public Investment survey released in February.”