Most of Canada’s provinces are expected to see economic growth next year, but clearly the stars will be in the western part of the country. On Friday, the Conference Board of Canada noted that Western Canada will see higher commodity prices and will enjoy increased investments in the energy industry.
Eastern and Central Canada are expected to be more affected by the debt crisis globally and the uncertainty in United States politics, as well as by provincial governments working on reducing deficits. The private sector is expecting to play a big part in economic growth in that region, offsetting the cutting in provincial and federal spending. The director of the Conference Boart, Christine Bernard, cautions that if the European dept crisis extends globally, then the provinces could be affected.
Alberta is expected to see the largest amount of growth, with an expected increase of 3.6 percent, compared to the 3.1 percent predicted by the end of this year. The demand for more energy means oil prices will remain strong. That in turn gives companies more profit to invest back into their projects. That creates more jobs in the energy and related industry, but down the road in the services and construction industries that are needed to take care of the influx of new people moving to Alberta.
Saskatchewan is having an impressive 2011, coming in with a 5.1 percent economic growth rate, the highest in Canada. But that same province is expected to slow to a 2.8 percent growth rate for 2012. That province is also seeing profit from its energy and potash sectors. British Columbia is expected to remain stable at 2.5 percent, while Manitoba will see a growth from 2.1 percent in 2011 to 2.6 percent for 2012. Ontario and Quebec are anticipating slight increases, while Newfoundland and Labrador will see a slight decrease. The rest of the Atlantic Provinces are expected to stay fairly stable.
