Viewed from a different perspective, the recent energy figures may result in less adverse impact on Calgary Real Estate, as this is normal in the cyclical pattern of Alberta's economy.
According to a report released by ATB Financial, the continued lowering of Alberta's oil prices results in a dimmer outlook for its economy. According to ATB Financial chief economist, Todd Hirsch, instability in oil prices contributed to lower short-term expectations, with energy price levels expected to range between $45 and $55.
For 2015, Alberta's GDP growth forecast in the 2nd quarter was pegged at 0.8%, lower than the 2% forecast in January. The Statistics Canada also reported a decline in real GDP of 0.1% for January, due to lower wholesale and retail sales.
The bank's expectations on this year's unemployment rate for the province is 6%, higher than 2014's unemployment rate of 4.7%; also higher than the first quarter's forecast of 5.4%.
However, the bank forecasts a gradual recovery in Alberta's economy this year, predicting a 1.7% growth in 2016 and 3.1% in 2017.
The area director for economic and social policy for the University of Calgary’s School of Public Policy, Ron Kneebone, said that fears of recession are, however, unfounded.
While the drop in oil prices may negatively impact on the government's finances, this would somehow trigger it to find ways of removing these uncertainties.
Hirsch stressed that despite this dimming effect on the province's economy, these are normal in Alberta economy's cyclical pattern.
In fact, the private sector identified some strength from this. According to Hirsch, the drop in fuel prices will likely result in a favorable impact on tourism, agriculture and forestry. This would definitely include the Calgary real estate industry. He added that the depreciating Canadian dollar and lower commodity prices may favorably lessen the impact to such other sectors in the economy for the coming months.
Source: Calgary Herald
For more Information, contact Calgary Realtor Ross Pavl at: http://www.rosspavl.com
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