Calgary

Alberta's economy to be worst hit this year, think-tank says

Alberta's economy is expected to fare worse than any other province's this year, the Canada West Foundation said on Thursday.
A report by a think-tank predicts that Alberta's economy will post minimal growth next year. ((CBC))

Alberta's economy is expected to fare worse than any other province's this year, the Canada West Foundation said on Thursday. 

A report released by think-tank predicts the province's economy will shrink by almost 2.5 per cent this year, and post growth of less than two per cent next year.

"Alberta is being hit harder than in previous recessions," said senior economist Jacques Marcil.

"In past economic slowdowns, either the energy industry kept Alberta growing while the national economy was struggling, or the energy industry took a hit while the national economy stayed the same," he said.

"The one-two punch of global recession and plunging energy prices mean that Alberta will be hit worse than the rest of Canada this year."

Marcil said economists are predicting that the U.S., Alberta's largest energy market, will begin to recover in 2010.  He said that will be an important first step towards economic recovery in Alberta.