Calgary to lead Canadian economic growth in 2014
3.7% hike forecast for Real GDP
Calgary is forecast to lead the country in economic growth this year.
Photograph by: Colleen De Neve Colleen De Neve , Calgary Herald
CALGARY - Calgary’s economy has strengthened considerably in the past few years with strong business and consumer confidence as the city is forecast to lead the country in real GDP growth in 2014.
A report released Wednesday by the Conference Board of Canada said Calgary’s economy will grow by 3.7 per cent this year followed by Regina (3.5 per cent) and Edmonton (3.4 per cent).
The board forecasts Edmonton to lead the country with average annual growth of 3.1 per cent between 2015-2018 followed by Calgary (2.9 per cent) and Vancouver (2.8 per cent).
Calgary placed fifth in the country in 2013 with 3.4 per cent growth behind Saskatoon (6.5 per cent), St. John’s (6.0 per cent), Regina (5.0 per cent) and Edmonton (4.6 per cent).
“In the first half of 2013, widespread gains in both the goods and the services sectors were setting the stage for another solid year in Calgary,” said the board’s Metropolitan Outlook. “However, a devastating flood in the summer temporarily shut down the city.
“In 2014, Calgary’s economy is expected to improve slightly, as better results in the manufacturing and construction industries will coincide with improved services sector growth.”
The board said Alberta’s economic growth was 3.2 per cent in 2013 and is forecast to be 3.4 per cent this year then average 2.4 per cent each year between 2015-2018.
“Alberta has relied heavily on capital investment to drive economic activity, and investment has been oriented increasingly toward the province’s energy sector. But transportation constraints present a downside risk to future investment in the province, as the inability to move product to refining centres is a key reason for the lower prices received for Canadian oil,” said the board.
“Several pipeline projects are being considered that would help alleviate some of the problem, but to date none have gained regulatory approval. The Conference Board believes that construction on at least one substantial pipeline will begin in the next 18 months. As a result, real business investment will increase by 4.7 per cent in 2014, followed by another 4.4 per cent in 2015.”
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123
A report released Wednesday by the Conference Board of Canada said Calgary’s economy will grow by 3.7 per cent this year followed by Regina (3.5 per cent) and Edmonton (3.4 per cent).
The board forecasts Edmonton to lead the country with average annual growth of 3.1 per cent between 2015-2018 followed by Calgary (2.9 per cent) and Vancouver (2.8 per cent).
Calgary placed fifth in the country in 2013 with 3.4 per cent growth behind Saskatoon (6.5 per cent), St. John’s (6.0 per cent), Regina (5.0 per cent) and Edmonton (4.6 per cent).
“In the first half of 2013, widespread gains in both the goods and the services sectors were setting the stage for another solid year in Calgary,” said the board’s Metropolitan Outlook. “However, a devastating flood in the summer temporarily shut down the city.
“In 2014, Calgary’s economy is expected to improve slightly, as better results in the manufacturing and construction industries will coincide with improved services sector growth.”
The board said Alberta’s economic growth was 3.2 per cent in 2013 and is forecast to be 3.4 per cent this year then average 2.4 per cent each year between 2015-2018.
“Alberta has relied heavily on capital investment to drive economic activity, and investment has been oriented increasingly toward the province’s energy sector. But transportation constraints present a downside risk to future investment in the province, as the inability to move product to refining centres is a key reason for the lower prices received for Canadian oil,” said the board.
“Several pipeline projects are being considered that would help alleviate some of the problem, but to date none have gained regulatory approval. The Conference Board believes that construction on at least one substantial pipeline will begin in the next 18 months. As a result, real business investment will increase by 4.7 per cent in 2014, followed by another 4.4 per cent in 2015.”
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123
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