Economists agree Western Canada will lead the nation in economic growth next year, with Alberta just behind Saskatchewan.
Michael Gregory, senior economist with BMO Capital Markets, who was in Calgary Thursday, said Saskatchewan's real GDP growth rate will be 3.8% in 2011 followed by Alberta at 3.4% and British Columbia at 3.1%. And Manitoba is forecast for 2.7% growth.
All four western provinces will surpass the national average of 2.4%.
Gregory said that, although the natural gas sector remains "a bit depressed," oil prices will remain firm in the $80 U.S. a barrel range.
Improved consumer confidence and a stronger oilpatch will have a ripple effect through the Alberta economy, added Gregory.
Warren Jestin, chief economist with Scotiabank, concurred that Western Canada will lead the country in economic growth.
"The important thing is the West is leading by orientation toward the commodity markets," he said.
Jestin said Alberta's economic growth next year will be in the 3.5% range while the Canadian average will be 2.5%.
He also said Saskatchewan, Alberta, British Columbia and Newfoundland would lead the country in economic growth in the next five years.
"We're on the road to recovery," said Jestin, adding that the economy is not going to return however to pre-recessionary levels.
A Provincial Outlook report by the Conference Board of Canada, released earlier in the week, said Alberta's economy will enter another period of prolonged growth starting in 2011. The province is expected to create nearly 60,000 new jobs next year, which -- when combined with steady growth in wages and salaries -- will keep consumer spending solid.
Boosted by a swift rebound in the drilling industry, real GDP in Alberta is expected to advance by 3.6% in 2010, it predicted, adding that economic growth in the province would be 2.8% in 2011.
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