Alberta to avoid recession says RBC

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Fears that the oil industry’s decline would drag Alberta into recession are not shared by the Royal Bank of Canada. A report by senior economist Robert Hogue says that although there is likely to be a dramatic slow down for the province there will still be growth.  That growth though will be sharply lower than the RBC prediction made in December when it expected GDP to grow by 2.7 per cent, down from the 4.1 per cent of 2014. This latest report suggests an even slower 0.6 per cent growth for 2015. Hogue says the cut in capital investment by the oil industry will impact employment, consumer spending, migration and the housing market. While confidence may be the issue for real estate in Alberta now it will be lower population growth that is the bigger factor Hogue’s report predicts. He sees home resales declining by 16 per cent this year with housing starts down to 27,500 from last year’s 40,600. There is more optimism on prices though with the report suggesting a drop of just 0.5 per cent across the province. Read the full story.
 
  • Luis on 2015-02-10 10:00:12 AM

    RBC, is worrying too much. All they need is to increase everyone`s limit on credit cards so they can keep their mortgage payment current through cash advances. Especially those who lost their jobs. Mr. Harper has it all under control with new immigration policy. Citizenship purchase for Million$ for your houses! You will get your money back when they sell to unsuspected new immigrants for insane amounts. It is not the toys that drive household debt to 160+%, but lack of affordability to live in houses priced as such. One can put years of living expense in to value of the house with piece of mind that some fool will pick it up later. All conditions are well in place. Bleached MLS reports, RE companies' spineless marketing efforts, lies of government institutions. What a great country!

  • Daryl French on 2015-02-10 12:02:44 PM

    It's a free country, no ones forcing you to stay Luis??

  • Ottawa Broker on 2015-02-10 12:12:39 PM

    Hey Luis, pack your bags and get out of Canada, we don't want negative idiots like yourself. Canada is the best country in the world. We don't need cry babies like you in this country. but I am sure you don't have the back bone or personal strength to leave this country as you are a spineless loser. Why don't you show your full name after a comment like that? I am from a military family that has given greatly for this country, so when I hear negative comments like yours, you are lucky I don't know your last name or I would drag you to the border by your hair and kick your ass out of this country. you are a loser.

  • Ottawa Broker on 2015-02-10 12:13:16 PM

    Hey Luis, pack your bags and get out of Canada, we don't want negative idiots like yourself. Canada is the best country in the world. We don't need cry babies like you in this country. but I am sure you don't have the back bone or personal strength to leave this country as you are a spineless loser. Why don't you show your full name after a comment like that? I am from a military family that has given greatly for this country, so when I hear negative comments like yours, you are lucky I don't know your last name or I would drag you to the border by your hair and kick your ass out of this country. you are a loser.

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