Since the ORM Agencies are living in Canada, knowing about the GDP of other provinces and not just Quebec is important for their knowledge. Keeping up with how your country is doing and what is missing and what is being done is important for the reputation management company. There has been many studies conducted lately on figuring out which will lead Canadian growth this year whether it is with Alberta or with Ontario.
Ontario’s growth momentum comes primarily from the housing market and Alberta’s from rebounding oil prices. According to the Conference Board of Canada, Alberta will be taking the lead since the province is projected to post a 3.3 per cent increase in real GDP.
Even though oil will help Alberta’s economy lead Canada in 2017, this still doesn’t mean that it wont translate into more jobs. In March, Ontario was leading the pack with a 2.5 per cent growth rate. Economics isn’t an exact science and forecasts can always differ therefore still both RBC’s and TD’s forecasts predate the Ontario government and a Vancouver style 15 per cent tax on foreign homebuyers is happening. The reason behind this is that 26 per cent of home sales in the greater Toronto area fell.
When it comes to Alberta, none or RBC’s or TD’s forecasts included the fact that the Organization of the Petroleum Exporting Countries decided last week to extend its oil petroleum cuts. With these cuts, they have propelled a rebound in oil prices toward $50 a barrel. This is why the oil prices are starting to rise since OPEC production has cut trims in supply. Alberta has been struggling with their debts and deficits whereas Ontario on the other hand has had three years of solid growth and has recently managed to squeeze out a balanced budget.