And just like that, Canada’s growth engine implodes: Alberta likely to enter recession this year.
The Conference Board of Canada says Alberta will likely face a recession this year due to the plunging price of oil.
The economic think tank says Alberta’s latest employment and new housing start numbers are holding steady, but if oil prices stay low the province will slip into recession.
Chief economist Glen Hodgson says even if oil prices rebound to $65 per barrel, he forecasts that investment, profits and consumer spending will be down.
“It’s going to be very hard for Alberta to avoid a recession this year,” Hodgson said Monday.
“Even if the oil prices bounce back to say $65, that’s going to take a lot of steam out of investment, profitability and also consumption in the province of Alberta.”
Recession even at $65 a barrel? Try current $45, or secular support in the under $30/barrel range…So goes oil and Alberta, so goes Canadian growth hopes and the federal budget, see: Low oil prices to tip feds from surplus to budget deficit