It’s now predicted that Alberta’s economic downturn will likely be the province’s longest since the 1980’s. A new report by TD Bank anticipates the economy will shrink 6.5 per cent between 2014 and 2016, making the drop deeper than in 2009. That’s when the real gross domestic product diminished by 5.5 per cent over one year.
TD argues the weak loonie and low interest rates are actually helping offset low oil prices, as Alberta is seeing an increase in non-energy sector exports. Even in a recession, the province is expected to post a much higher GDP per capita than any other province.