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By David Opinko

Alberta poised for significant economic recovery in 2021 after record drop last year

Mar 10, 2021 | 11:28 AM

LETHBRIDGE, AB – It is no secret that Alberta’s economy took a hammering in 2020, but that could soon come to an end.

A new report from the Conference Board of Canada looks at the economic future of the country and its provinces over the next year.

The COVID-19 pandemic forced all parts of the country to take actions such as closing non-essential businesses and limiting in-person gatherings.

This lead to sharp economic declines across the country with the national economy shrinking by 5.3 per cent last year.

As vaccines arrive in larger quantities and provinces lift restrictions, the country is primed for an economic rebound this year.

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The Conference Board estimates that real GDP will grow nationally by around 4.5 per cent in 2021 and just under four per cent in 2022.

More than any other province or territory, the largest gains will be seen in Alberta.

In addition to opening up more businesses, the province has also experienced a rebound in oil and gas prices.

After falling by nearly eight per cent in 2020, Alberta’s GDP is set to rise by 6.4 per cent this year.

The Conference Board notes, however, that Alberta will still face some economic troubles going ahead.

While construction on Trans Mountain and Enbridge Line 3 will go ahead, the province was expecting to see economic benefits from the Keystone XL Pipeline expansion project but the permit was scrapped by U.S. President Joe Biden.

The provincial unemployment rate in Alberta peaked at 15.8 per cent last June. In January 2021, that number fell to 10.7 per cent.

Although that is an improvement, there are still about 100,000 fewer Albertans employed in the province today than in Q4 2019.

Still, the Conference Board remains optimistic that Canada, and especially Alberta, will see a significant economic recovery in 2021.