Economy

Calgary likely to experience slight economic downturn in 2024, new projections show

Published

11 months ago

November 1, 2023

Calgary and Alberta are headed for a year of dampened growth, but both are less at risk of falling victim to economic headwinds than other areas of Canada, new forecasts show.

“(Calgary is) probably better positioned than a lot of other communities or jurisdictions around North America … but I’m not gonna lie, I think we’re going to see some headwinds in 2024,” Brad Parry, president and CEO of Calgary Economic Development and CEO of Opportunity Calgary Investment Fund, said in a Wednesday interview.

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GDP growth in Alberta, projected to hit 2.7 per cent this year, is expected to drop to 2 per cent in 2024, according to projections by ATB Financial.

Parry said Calgary has seen a slight slowdown in venture capital investment in 2023, which hit a record $647 million last year. However, he said the province appears to be on pace to beat last year’s thresholds in that category, he said.

The change he’s seeing is that businesses are no longer outgrowing Calgary, Parry said.

“The big difference is … companies don’t need to leave Calgary now to grow and scale their companies. There’s venture capital, there’s talent, there’s all those things that allow us to continue to attract investment.”

The city has progressed on diversifying its business scene to expand beyond oil and gas, he said, but it’s still a distance away from where Parry would like to be.

“I think we’re teenagers, if I had to think about it,” he said. “We’ve established ourselves.”

The projected economic slowdown will largely be due to global inflation and high interest rates, said Curtis Stange, president and CEO of ATB Financial.

“With headwinds building, we expect growth to slow next year, before picking up again in 2025,” Mark Parsons, vice president and chief economist at ATB financial, said in a Wednesday news release.

But still, Calgary and Alberta are in an “enviable” position for their resource sector and diverse industries, said Stephen Poloz, special advisor at Osler and former Governor of the Bank of Canada.

Parry maintained that his position for Calgary and the province in 2024 is “cautiously optimistic.”

“We’re not at the pinnacle … I still think we’ve got a long way to go,” he said. “It’s that sense of optimism with the types of technologies that are being developed in our city that are really going to set us apart.”

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Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

Published

14 hours ago

September 13, 2024

Anne Joseph

TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

Statistics Canada reports wholesale sales higher in July

Published

21 hours ago

September 13, 2024

Anne Joseph

OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

Published

2 days ago

September 12, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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