RBC sees Canada’s economy growing, but Alberta’s will boom and create jobs

The Royal Bank says most of Canada will experience stronger economic growth this year and next, but only Alberta will see the kind of gains that will make a real impact on job creation.

OTTAWA — The Royal Bank says most of Canada will experience stronger economic growth this year and next, but only Alberta will see the kind of gains that will make a real impact on job creation.

The latest quarterly report from Canada’s largest bank predicts the overall economy will expand by 2.4 per cent this year and 2.7 per cent in 2015, moderately stronger growth rates than the Bank of Canada expects.

The RBC economists say they believe the U.S. economy is kicking into gear and that — combined with the lower value of the loonie — will result in more demand for Canadian exports.

Although most economists share the same view, the numbers so far have yet to show any real rebound in the hard-pressed export sector, particularly non-resource exports.

As has been the case in recent years, the RBC forecast sees a decidedly western tilt to economic activity and job growth this year and next.

Alberta will lead the pack with a 3.7 per cent growth rate in 2014, slowing only moderately to 3.5 per cent in 2015.

Employment in the province is expected to increase by 2.9 per cent this year, the same as in 2013, about three times the national average. That was underlined in last Friday’s labour market report from Statistics Canada which showed that of 85,500 jobs created in Canada over the last 12 months, 71,200 were in Alberta.

The report does contain some good news for Ontario, which will see an export-led revival to 2.3 per cent growth this year — the second-highest rate in the country — after advancing by a weak 1.3 per cent the previous two years.

Still, new jobs will be scare in Canada’s most populous province, RBC says. Employment is expected to grow in line with the national average, or 0.9 per cent.

The big surprise in the report is that Saskatchewan’s economy is projected to slow sharply to 1.4 per cent growth after a 4.5 per cent surge in 2013. The main reason is a reversal in the agriculture boom the province enjoyed last year, the bank said.

However, the slowdown won’t last for long, with the bank predicting growth in Saskatchewan to rebound to about three per cent in 2015.

Projected provincial growth rates in percentage terms for 2014 and 2015 were: Newfoundland (0.6, 1.4); Prince Edward Island (1.4, 1.2); Nova Scotia (2.2, 2.2); New Brunswick (1.0, 1.4); Quebec (1.9, 1.8); Ontario (2.3, 2.8); Manitoba (2.1, 2.8); Saskatchewan (1.4, 3.0); Alberta (3.7, 3.5); British Columbia (2.1, 2.8).

Just Posted

WATCH: Rappelling down Red Deer’s Stantec Building a thrilling, scary experience

Advocate reporter chronicles his trip down the 13-storey buildling

Red Deer raises $60,000 for Make-A-Wish Foundation

27 brave residents rappell down Stantec Building

People hurt in rollover near Red Deer

Occupants of a vehicle that rolled south of Hwy 11A were airlifted… Continue reading

Eager-beaver cannabis entrepreneurs already waiting outside Red Deer City Hall

Appications will be accepted on a first-come basis starting on Tuesday

Like father like son: Red Deer area Dreeshen family dedicates life to public service

There are three jobs that could be considered the Dreeshen family business:… Continue reading

WATCH: Gazebo groundbreaking in Waskasoo

Fifty per cent of the $100,000 project is funded by a provincial government grant

Woman killed in collision near Olds

A woman is dead after a collision west of Olds Saturday afternoon.… Continue reading

Evacuation numbers remain at nearly 1,000 as B.C. wildfires rage on

SUMMERLAND, B.C. — Officials in British Columbia’s Okanagan region hope that fire… Continue reading

Survivors recount deadly Missouri duck boat sinking

BRANSON, Mo. — “Grab the baby!” Those were the last words Tia… Continue reading

HMCS St. John’s to return to Halifax after six-month deployment overseas

HALIFAX — The countdown is on for the homecoming of a Halifax-class… Continue reading

Trump says lawyer taping him may be ‘illegal’

BRIDGEWATER, N.J. — The Latest on President Donald Trump and his onetime… Continue reading

Spieth part of 3-way tie for British lead as Woods lurks

CARNOUSTIE, Scotland — Jordan Spieth has a share of the lead in… Continue reading

WWII hero’s lost Purple Heart returned to his family

NEW YORK — A lost Purple Heart medal has been returned to… Continue reading

California girl, 2, accidentally shot and killed by boy, 4

SAN BERNARDINO, Calif. — Authorities say a 4-year-old boy accidentally shot and… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month