There are few living in Alberta these days who do not have the state of the economy on their minds. Checking the market numbers each day is a cringe-worthy affair as the glaring red numbers remind us of the continuous decline of everything from stocks and energy to the Canadian dollar. Even the 1990s-level gas prices do little to ease our minds, only serving to remind us of the low price of oil, the catalyst to this province’s economic decline.
But is it all bad? If you are one of the more than 60,000 people in Alberta collecting employment insurance, there is little to reassure you it isn’t. But, as any longtime Albertan knows ups and downs in the economy are nothing new here. We have ridden the wave of energy prices for decades and this is not the worst we have seen things get, though it is close.
If we are lucky, there might be a light at the end of this tunnel. Despite the downturn, the Bank of Montreal is projecting economic growth for the country this year. While it is a meagre one per cent, we live in economic conditions where something is definitely better than nothing – or further decline. For Albertans the BMO’s predictions include glad tidings for us considering that small increase plus a 2.1-per-cent increase predicted in 2017 includes growth in Alberta.
Federal and provincial infrastructure stimulus funding is predicted to provide a short-term crutch until energy prices begin to rise, which will bring some stability. We also might see some movement on the pipeline front. If the rest of the country can get Quebec on-board, the Energy East Pipeline could see clear sailing. That would be good news for Alberta oil producers. The decision not to raise oil and gas royalties might also help spur some investment once the price of oil begins to rebound.
Todd Hirsch, an economist with the ATB, told media last month current conditions also have a psychological effect on consumers, who will hang on to their money but added it is not all gloom and doom.
Alberta is an export-heavy economy, he said, which means a lot of businesses that sell their product in U.S. dollars will be at an advantage right now. Tourism and our growing film industry will also benefit. We have seen the benefits of the latter with more and more blockbuster films using our picturesque landscape as backdrops.
Albertans are resilient and hardworking, which is why time and again we have been able to survive through the hard times similar to the ones we are seeing now. That perseverance and work ethic will see us through again.
