B.C. is on track to lead the other provinces in growth this year but Alberta is still in a recession.
BMO Financial Group expects Alberta’s economy will shrink by another 2.3 per cent , followed by a decline of 4.0 per cent in 2015.
The banking group says the downturn in Alberta’s energy sector has spilled into other parts of the economy and the provincial unemployment rate is above 8 per cent for the first time since the early ’80s.
The price of oil, the source of the recession, climbed above $50U.S. a barrel this morning for the first time since late June. While crude prices have been heading steadily upward over the past week, analysts don’t expect prices to shoot up much further as production remains high.
B.C.’s economy is forecast to grow by 3.0 per cent more than twice the national growth of 1.2 per cent.
Newfoundland and Labrador is also expected to see its economy shrink this year, by 2.0 per cent, while Saskatchewan will manage a small gain of 0.5 per cent.
The report says Ontario, Manitoba and Quebec are expected to have growth above the national average while the three Maritime provinces will come in below the average.