Recovery Bolstered by Robust Oil Prices: Alberta’s Two-Year Outlook—April 2022

Document Highlights

Alberta’s economy expanded by an estimated 5.1 per cent in 2021. A stronger rebound of 5.9 per cent is forecast for this year before growth moderates to 4.3 per cent in 2023.

The province’s recovery has been partially linked to higher world oil prices. We expect this trend to continue, as prices surged in early 2022 and are expected to remain elevated this year.

While we forecast capital spending in the oil and gas industry will continue to recover this year, energy producers will keep focusing on their balance sheets, optimizing current operations, buying back shares, and attracting investors with dividends.