Alberta Economic Growth
by Todd Hirsch Senior Economist, ATB Financial
While a lot of question marks are punctuating the global economy at the moment, growth seems to be charging ahead nonetheless. And this year, Alberta is poised to be one of the best economies in the developed world.
According to the latest GDP forecast released by the IMF this morning, the global economy is gaining strength. Overall, the world’s output is expected to expand by 4.5% in 2011.
“Given the improvement in financial markets, buoyant activity in many emerging and developing economies, and growing confidence in advanced economies, economic prospects for 2011–12 are good,” the IMF said in its April 2011 World Economic Outlook. The report is particularly optimistic for the emerging economies of China, India and Brazil (see graph).
Of the developed economies, North America is expected to put in the best performance. Canada’s 2011 forecast was raised to 2.8%, up from 2.3% in the January report. The US is also expected to grow by 2.8% this year.
The IMF points out that high oil prices and disruptions to global supply pose risks to the global recovery. However, those high oil prices are boosting growth here in Alberta.
The provincial government’s forecast (from the 2011-12 budget) pegs growth at 3.3%; most private sector forecasts are higher than that. This puts Alberta among the very best economic performers of the developed countries of the world in 2011.