Statistics Canada recently reported that Alberta’s manufacturing sales year-over-year fell 13.2 per cent, with a loss of almost four per cent from December to January. Alberta’s economy continued to shrink because of the collapse of the oil and gas sector (Wikipedia, 2019). Canada is on recession watch after its economy almost stalled at the end of last year. Gross domestic product grew by just 0.1 percent in the fourth quarter, or 0.4 percent annualized. It’s a weak enough number that could easily be revised into a contraction as new data come in (Bloomberg, 2019).
In July 2019, Alberta’s seasonally adjusted unemployment rate was 7.0%, an increase of 0.3% from July 2018 (see below).
Canada is one of the heaviest hit oil producers in the world and Alberta as the premier oil producer and considered by many to be the bread basket of the whole country, has suffered the most pain. It is well accepted that Canada has an oil run economy. In the last ten or so years, Canada’s oil deposits were inventoried and found to be more abundant than previously perceived.
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