Economic Repercussions of Fort Mac Fires—More Complex Than at First Glance

While the impacts of the wildfires that burned through Fort McMurray have been devastating for local residents and businesses, economic growth will take only a minor hit this year and will get a boost from rebuilding next year.

Still, the true cost of this tragedy is its effects on people’s lives. And while rebuilding will generate economic activity, Canadians in general or Albertans in particular will not be better off economically. The funds put toward replacing lost capital will leave the provincial and federal governments with more debt and the insurance industry with the challenge of absorbing what will most likely prove to be the costliest natural disaster in Canadian history.