Sunday, June 28, 2009

Good news and bad news

Alberta's economy will take some hits before rebounding in 2010 according to Premier Ed Stelmach.

"It's just not oil and gas prices, but it's the value of the dollar, the manufacturing sector, and that's why we're promoting Alberta globally, because we have to find new markets for our products."

RBC says that Saskatchewan, Manitoba and Nova Scotia are expected to show economic growth in 2009. The rest of the provinces should be on track by 2010.

So basically Alberta, a province with until recently the most growth, will experience negative growth like most other Canadian provinces until 2010.

What's the good news?

"The good news here is the downturn is giving the province's overheated economy time to breathe and is allowing energy companies time to redevelop their stalled megaprojects to being more environmentally friendly."

"As an example, the Canada West Foundation mentions Imperial Oil's announcement of its $8-billion Kearl oilsands project last month: "Sign of the times: the announcement included a mention of greenhouse-gas emission targets and was realistic about the technology upgrades required to meet them. The next cycle of oilsands development should be quite different from the previous one." Read More Good News About Alberta's Economy

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