Canada’s Oil Province Betting on Growth Despite Lower Crude Prices

Alberta is betting that the recent dip in oil will be temporary and that higher crude prices will allow the province to shrink its deficit while raising spending.

The deficit will narrow to C$10.3 billion ($7.7 billion) in fiscal 2017-18 from C$10.8 billion in the current fiscal year as economic growth in Canada’s energy province rebounds to 2.6 percent after three years of contraction, according to budget documents released on Thursday.

“Its clear, Alberta’s economy is set to grow,” Finance Minister Joe Ceci said in a speech before the legislature in Edmonton. “Our energy industry is on more solid footing. Drilling is increasing, with twice the number of rigs active compared with this time last year. And jobs are starting to come back.”

via Bloomberg

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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