Alberta Finance Minister Joe Ceci says the provincial economy is leading nationally, leaving a recession behind. Photo courtesy of the provincial government of Alberta.
March 1 (UPI) -- Economic growth in oil-rich province of Alberta beat gains from the United States on the back of higher oil prices, its government announced.
"Economic growth continues to exceed expectations with 2017 GDP growth forecasts increasing for the third time and 2018 growth projected to be stronger," the provincial government stated. "Growing exports, a strong rebound in consumer spending and confidence, and improvement in oil prices show a broad-based recovery of Alberta's economy."
Alberta dominates the oil landscape in Canada. Provincial data show total production in December was 108 million barrels, up 10.1 percent from the same month in 2016. Total yearly production was estimated at 1.1 billion barrels, up 9.2 percent from 2016.
The provincial government reported a 4.5 percent gain in gross domestic product. The U.S. Commerce Department reported real GDP during the fourth quarter increased at an annual rate of 2.5 percent, compared with a 3.2 percent increase during the third quarter.
Alberta's economy is leading the rest of the country in terms of growth, posting gains across all business sectors.
"Alberta's economic growth and broad-based recovery show that we made the right choice in the face of the worst recession in a generation," Finance Minister Joe Ceci said in a statement. "Nearly 90,000 full-time jobs were created over the last year and Alberta's GDP growth led the country at 4.5 percent in 2017."
The oil-rich province was once anticipating an $8 billion deficit and lingering recession because of the downturn in crude oil prices and May 2016 wildfires in the Fort McMurray area that idled about 1 million barrels per day worth of regional oil production.
Alberta now estimates a deficit of $7 billion. The rate of unemployment, meanwhile, improved from 7.6 percent to 6.8 percent. The U.S. economy, meanwhile, is at near-full employment.
Based on reserves for oil sands, a thicker type of oil, Alberta by itself ranks third in the world behind Venezuela and Saudi Arabia with a 2016 reserve estimate of 165.4 billion barrels.
"Conventional oil and gas investments far exceeded expectations," the government's statement read.
The government forecasts a price for West Texas Intermediate, the U.S. benchmark for the price of oil, at $54 per barrel, about $7 per barrel less than the current price.
