Canadian Bank Reaffirms Alberta’s Condition as Growth Engine

The Royal Bank says most of Canada will experience stronger economic growth this year and next, but only Alberta will see the kind of gains that will make a real impact on job creation.

The latest quarterly report from Canada’s largest bank predicts the overall economy will expand by 2.4 per cent this year and 2.7 per cent in 2015, moderately stronger growth rates than the Bank of Canada expects.

The RBC economists say they believe the U.S. economy is kicking into gear and that — combined with the lower value of the loonie — will result in more demand for Canadian exports.

Although most economists share the same view, the numbers so far have yet to show any real rebound in the hard-pressed export sector, particularly non-resource exports.

As has been the case in recent years, the RBC forecast sees a decidedly western tilt to economic activity and job growth this year and next.

Alberta will lead the pack with a 3.7 per cent growth rate in 2014, slowing only moderately to 3.5 per cent in 2015.

Employment in the province is expected to increase by 2.9 per cent this year, the same as in 2013, about three times the national average. That was underlined in last Friday’s labour market report from Statistics Canada which showed that of 85,500 jobs created in Canada over the last 12 months, 71,200 were in Alberta.

via Montreal Gazette

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza