Servus forecast robust times ahead

BY ADVOCATE STAFF A Servus Credit Union economist is predicting “robust economic times” for Albertans.


A Servus Credit Union economist is predicting “robust economic times” for Albertans.

Mike Drotar, vice-president treasury with the Edmonton-based credit union, said in written forecast that growth in the province should hit 3.8 per cent this year and 3.6 per cent in 2015.

The energy sector will provide much of the stimulus, he said, with natural gas prices potentially averaging $5 per thousand cubic feet in 2015 and West Texas intermediate crude approaching $100 over the next three years.

A provincial unemployment rate of around four per cent could translate into a labour shortage and upward pressure on wages, said Drotar.

A wild card in the economic deck is the uncertainty surrounding the development of new pipeline capacity between Alberta and export markets, he said.

Nationally, the economy should reach 2.3 per cent in 2014 and 2.9 per cent in 2015, helped by Western Canada’s strong energy sector.

Equity markets will continue to climb, said Drotar, who pointed out that the Toronto Stock Exchange has gained 90 per cent from its March 2009 low.

On the global front, Drotar expects growth of just under four per cent over the next three years, with China averaging between seven and 7.5 per cent. He noted continued signs of recovery in the United States, and said the key for the U.S. and Europe is for the governments there to get long-term debt under control without “choking off” economic growth.

Just Posted

‘Do Indians have property rights?’ Former Alberta chief’s land dispute in court

STANDOFF, Alta. — A dispute between two families over land on Canada’s… Continue reading

Missing female found near Sundre

Local rancher finds missing female

Buyers turn to letters to snag homes in Canada’s hot real estate markets

TORONTO — Monica Martins and her husband had been looking for a… Continue reading

Spin yarn unspun: Research upends theory that Vikings taught Inuit fibre skills

New research is upending old assumptions about what the ancestors of today’s… Continue reading

Woman sues fertility clinic, says lawsuit highlights need for better regulation

TORONTO — A lawsuit filed by a Toronto woman against a fertility… Continue reading

WATCH: Gazebo groundbreaking in Waskasoo

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

Second World War Two-era B-29 Superfortress named ‘Fifi’ lands for first-ever Canadian tour

MONTREAL — A rare Second World War-era bomber named “Fifi” has touched… Continue reading

Magnus Cort Nielsen wins Stage 15 of Tour de France

CARCASSONNE, France — Magnus Cort Nielsen of Denmark sprinted away from two… Continue reading

Ryan Reynolds teases ‘Deadpool 2’ extended cut at Comic-Con

SAN DIEGO — Ryan Reynolds has made a triumphant return to San… Continue reading

‘Wonder Woman,’ ‘Aquaman’ and ‘Shazam!” thrill Comic-Con

SAN DIEGO — Warner Bros. brought out all the stops Saturday at… Continue reading

All shell, no shock: Lobster prices strong, season picks up

PORTLAND, Maine — New England’s lobster industry faces big new challenges in… Continue reading

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

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