Posted: Jan 13, 2015 12:41 PM ET
Alberta faces a very real possibility of slipping into recession this year because of dramatically lower oil prices, the Conference Board of Canada says.
Much lower energy prices are playing out in different ways across Canada, but one place where the impact is likely to be the most prominent is Alberta's oil-heavy economy.
Many economists have slashed their growth expectations in recent months as the price of a barrel of oil has nosedived from $105 US as recently as June to under $50 today. But in a recent report, the Conference Board of Canada said the province faces more than just a slowdown — it could see an actual recession.
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Some oil patch watchers are bracing for more, as the last time oil prices cratered like this was in the recession of 2008.
"Engineering investment in the province nosedived by about $18 billion, some 30,000 jobs in Alberta’s mining sector disappeared, and housing starts fell 75 per cent," Fields said.
Link: http://www.cbc.ca/news/business/oil-price-plunge-could-put-alberta-into-recession-conference-board-says-1.2899167?cmp=rss
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