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Doug Schweitzer says Alberta is on track for more than just recovery.
Doug Schweitzer said the provincial economy will expand by 5.4 per cent, among the best in Canada
Doug Schweitzer says Alberta is on track for more than just recovery.
In a first-quarter update on Friday, the economy, jobs and innovation minister pointed to different indicators, including record growth in venture capital investment, that indicate strong economic growth for the province.
He said the economy is expected to fully recover to 2014 levels this year, expanding by 5.4 per cent, among the best in Canada.
This is despite skyrocketing inflation and rising interest rates that are cramping the buying power of Albertans.
“Right now, in Alberta, we are forecasted to lead the country in growth this year and next year,” he said at a news conference. “Our focus right now has been getting people back to work and we’re seeing … with the trends we’re anticipating the unemployment rate will continue to drop in Alberta.”
Inflation in March hit 6.7 per cent nationally and 6.5 per cent in Alberta, the highest year-over-year mark since 1991. This has been driven by many factors, including energy prices, supply chain issues, workforce shortages, weather events, red hot real estate and other lingering pandemic impacts. This has caused the cost of living index to increase by three percentage points or more in most categories.
To counter this, the Bank of Canada has increased interest rates to one per cent from 0.25 per cent, including 50 base points on April 13. Many economists expect the rate to continue to rise to at least two per cent by the end of the year and likely sooner.
Alberta’s workforce numbers are improving, which, at 6.5 per cent unemployment, is the province’s lowest mark since December 2018. Through March, Alberta has added 22,400 jobs while 12,000 businesses have incorporated in that time, increasing weekly earnings by two percentage points year-over-year in January 2022.
Growth has been across all sectors, according to the minister, including logistics, aerospace, renewable energy, finance and technology, further diversifying the economy.
This is building off of the momentum from last year, which saw a record $561 million in venture capital investment in Alberta, up exponentially over previous years. Alberta, however, was outpaced by other provinces like Ontario and B.C.
In a quarterly snapshot by Calgary Economic Development released earlier this week, the CED said Alberta still only made up about four per cent of total national venture capital investment.
Schweitzer said that will change this year. He said the province has set a new quarterly investment record with $200 million worth of investment and there is more on the way.
“It’s like a hockey stick,” he told Postmedia. “We signed a record number of Series A financing — mid-level venture capital financing — but they’re a little bit smaller than your later stage fundings that are going to happen. Because of the volume of companies that are in that growth stage, we are expecting to see larger and larger financing happen in Alberta.”
He said cities like Toronto and Vancouver are three to five years ahead of where Alberta currently is.
Also key to recovery and growth are commodity prices. Energy, especially, has been riding high for months and has only been strengthened due to the Russian invasion of Ukraine. The price of oil has also aided the provincial government in putting forward a balanced budget while using conservative forecasts for pricing.
Schweitzer pointed to other sectors experiencing growth, like manufacturing, with sales of $16.1 billion in the first two months of 2022 (up 30.2 per cent year-over-year) while wholesale trade grew by 23.4 per cent with growth in every product category.
According to the report, Alberta also led the country in growth in merchandise exports with more than $28.6 billion in goods through February, up 54.4 per cent. Energy products were at the base of this, up 72.8 per cent.
Consecutive quarters of positive migration to Alberta are helping to fuel the economy as well, with building permits up 7.7 per cent year-over-year.
Twitter: @JoshAldrich03
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FREDERICTON – New Brunswick‘s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.
Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.
The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.
Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.
Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.
Meanwhile, the province’s net debt, according to the audited consolidated financial statements, has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.
Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.
This report by The Canadian Press was first published Sept. 16, 2024.
The Canadian Press. All rights reserved.
OTTAWA – Finance Minister Chrystia Freeland says the government is making some changes to mortgage rules to help more Canadians to purchase their first home.
She says the changes will come into force in December and better reflect the housing market.
The price cap for insured mortgages will be boosted for the first time since 2012, moving to $1.5 million from $1 million, to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
On Aug. 1 eligibility for the 30-year amortization was changed to include first-time buyers purchasing a newly-built home.
Justice Minister Arif Virani is also releasing drafts for a bill of rights for renters as well as one for homebuyers, both of which the government promised five months ago.
Virani says the government intends to work with provinces to prevent practices like renovictions, where landowners evict tenants and make minimal renovations and then seek higher rents.
The government touts today’s announced measures as the “boldest mortgage reforms in decades,” and it comes after a year of criticism over high housing costs.
The Liberals have been slumping in the polls for months, including among younger adults who say not being able to afford a house is one of their key concerns.
This report by The Canadian Press was first published Sept. 16, 2024.
The Canadian Press. All rights reserved.
OTTAWA – Statistics Canada says manufacturing sales rose 1.4 per cent to $71 billion in July, helped by higher sales in the petroleum and coal and chemical product subsectors.
The increase followed a 1.7 per cent decrease in June.
The agency says sales in the petroleum and coal product subsector gained 6.7 per cent to total $8.6 billion in July as most refineries sold more, helped by higher prices and demand.
Chemical product sales rose 5.3 per cent to $5.6 billion in July, boosted by increased sales of pharmaceutical and medicine products.
Sales of wood products fell 4.8 per cent for the month to $2.9 billion, the lowest level since May 2023.
In constant dollar terms, overall manufacturing sales rose 0.9 per cent in July.
This report by The Canadian Press was first published Sept. 16, 2024.
The Canadian Press. All rights reserved.
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