Servus forecast robust times ahead

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

BY ADVOCATE STAFF

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

Red Deer man says more cardiac care needed here

Ryan Gillies spent several extra days in hospital waiting to get a stent in Edmonton

Red Deer gets ready for CFR 45

A $20 to $25-million annual injection to the local economy

Former Red Deer teacher going to trial on child porn charges

Charges were laid in January 2017 after a woman came forward

Red Deer agency reports more than 1,000 lives saved with naloxone

Turning Point distributes 5,855 naloxone kits

Giddy up: Red Deer to host Canadian Finals Rodeo in 2018

The CFR is expected to bring $20-30 million annually to Red Deer and region

Red Deer city council debates cost-savings versus quality of life

Majority of councillors decide certain services are worth preserving

Got milk? Highway reopened near Millet

A southbound truck hauling milk and cartons collided with a bridge

Stettler’s newest residents overcame fear, bloodshed to come here

Daniel Kwizera, Diane Mukasine and kids now permanent residents

Giddy up: Red Deer to host Canadian Finals Rodeo in 2018

The CFR is expected to bring $20-30 million annually to Red Deer and region

Ice dancers Virtue and Moir to carry flag at Pyeongchang Olympics

Not since Kurt Browning at the 1994 Lillehammer Games has a figure… Continue reading

Beer Canada calls on feds to axe increasing beer tax as consumption trends down

OTTAWA — A trade association for Canada’s beer industry wants the federal… 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