ATB predicts 2.4 per cent growth for Alberta amid fires, inflation

EDMONTON — ATB Financial is forecasting 2.4 per cent and 2.2 per cent economic growth in Alberta for 2023 and 2024, respectively.

The province had significant growth in 2022 at five per cent, which marked the full recovery of real GDP since 2014, just before the economy was hit hard by the collapse of oil prices in 2015, states a news release.

But ATB has downgraded its previously forecast growth for 2023 by 0.2 per cent due to the impact of the May wildfires and inflation.

“Despite positive expansion of Alberta’s economy, it cannot avoid the challenges of inflation and rising interest rates,” said Mark Parsons, chief economist with ATB, in the release.

“However, two major peloton forces are helping Alberta draft through the economic headwinds: a mini population boom and strong performance in the energy and agri-food sectors.”

Forces aiding the economy include a 3.7 per cent population growth, the highest since 1982, and higher than expected capital spending by Alberta’s oil and gas sector.