Recession is over, says economist

(Source: Calgary Herald)

Rising commodity prices will fuel modest economic growth in Alberta in the next two years as demand for energy grows in the world’s emerging markets, says a national economist.

Canada’s recession is over and the country will lead all G-7 peers in economic growth next year, paced by Alberta’s strong energy sector, said Benjamin Tal, senior economist with CIBC World Markets Inc.

Canada can expect to see two per cent economic growth in 2010 and 3.8 per cent in 2011 with Alberta’s economy growing by 2.5 per cent next year followed by four per cent growth in 2011, he said.

On Friday, there were more signs that the economy was in recovery mode both nationally and locally. According to Statistics Canada’s new housing price index, contractors’ selling prices increased 0.3 per cent in July following a0.2 per cent decline in June. This was the first increase at the national level since September 2008.

However, on a year-over-year basis, new home prices were still down 7.3 per cent in Calgary and 3.2 per cent nationally.

Read Mario Toneguzzi’s full article “Alberta poised to lead Canadian rebound” in the Calgary Herald (September 12, 2009).

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