Curious article from Scotia Economics in their provincial outlook I'm really surprised at the short-slightness in their article. Especially in light of my previous post.
Investment in non-conventional oil production has virtually disappeared and weak energy prices will reduce conventional oil and gas production as well as drilling.
and
The precipitous decline in oil prices from their mid-2008 peak, coupled with still-high costs and tighter credit availability, have led to the postponement or cancellation of over $40 billion worth of capital projects, including new oil sands upgraders.
According the latest report from the Government of Alberta there is $234,001,200,000 in projects planned, $86 billion of this amount is on hold.
They believe that this huge slow down of only having $148 Billion in projects will cause the economy to shrink by 2.3%. Hmmm....That works out to be $41,000 in spending per person.
According the Conference Board of Canada (who don't care if you buy real estate), they expect to see a 0.5% drop in Alberta output. This seems to be more realistic
According to AIC, There is $25,000,000,000,000,000 (i just wanted to see how $25 trillion looked like) in worldwide stimulus that is being spent world wide, plus the hundreds of million new middle class people in China and India will require FOOD FUEL AND FERTILIZER
What kind of impact do you think this will have on our economy?
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