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Population, Trans Mountain Help Boost Alberta’s Economy: Deloitte

Population, Trans Mountain Help Boost Alberta’s Economy: Deloitte
Population, Trans Mountain Help Boost Alberta’s Economy: Deloitte

Canada’s economy is starting to calm down and Alberta is in a positive position, according to a new economic report.

According to Deloitte’s summer 2024 economic outlook, Alberta is benefiting from population growth as Canadians from other provinces move here in search of a lower cost of living.

That said, Alberta’s annual inflation rate in May was slightly higher than the national average, at three per cent, compared to 2.9 per cent.

“Alberta is experiencing tight housing market conditions as more people move into the province, and it also has the third-largest household debt-to-GDP ratio,” said Dawn Desjardins, chief economist for Deloitte Canada.

The opening of the Trans Mountain pipeline expansion is also expected to have a positive impact, with GDP growth expected to reach 1.5 percent this year and 3.3 percent next year.

At the national level, the economy is starting to stabilize.

“The economy is poised to do well in 2024. In fact, the first half of the year was slightly stronger than expected and we think we will see momentum pick up in the second half of the year,” Desjardins said.

While inflation rose to 2.9 percent in May, it has been steadily declining overall from 8.1 percent in June 2022.

The Bank of Canada has started cutting interest rates, but Deloitte thinks the central bank will do so slowly.

“We will probably see two more rate cuts this year, but only in September and December,” Desjardins said.

The next tariff decisions are on July 24, September 4, October 23 and December 11.

“We expect a decline of more than one percentage point in the overnight rate through 2025,” she added.

The report says Canada must improve weak business investment and productivity and reduce unit labor costs to meet its two percent inflation target.