B.C. to lead provinces in economic growth this year, Alberta in a recession: BMO

“The fallout from lower oil prices has Alberta’s economy still grappling with recession,” BMO senior economist Robert Kavcic writes in the 26-page report from the Canadian banking group.

“By next year, the economy should return to growth, but remain historically subdued at just above two per cent, assuming a gradual upward grind in oil prices.”

Newfoundland and Labrador is also expected to see its economy shrink this year — by two per cent — but Saskatchewan will eke out a small gain of half a per cent following last year’s decline.

The report says Ontario, Manitoba and Quebec are expected to have growth above the national average while the three Maritime provinces will come in below the average.

“Ontario’s economy is one of Canada’s growth leaders, expected to outperform the national average for a third straight year in 2016. This is a noteworthy change after a decade of under-performance through 2013,” Kavic writes.

Ontario’s real gross domestic product is estimated to grow at 2.6 per cent this year and 2.3 per cent in 2017, trailing only British Columbia in both years.

B.C.’s economy is expected to grow a more subdued 2.5 per cent in 2017 — above BMO’s estimate of national growth of 2.0 per cent next year.

None of the provincial economies is projected shrink next year, with Alberta matching Ontario with growth of 2.3 per cent and Newfoundland and Labrador eking out a 0.7 per cent increase in its real GDP.

David Paddon, The Canadian Press

by Canadian Press

B.C. to lead provinces in economic growth this year, Alberta in a recession: BMO

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