Alberta's economy will grow again in 2017: BMO report

Another major Canadian bank is predicting Alberta's economy will return to growth in 2017, after two years of recession.

TheBMO Blue Book report for October saysAlberta's real GDP shrank by four per cent in 2015and is expected to contract by another 2.3 per cent by the end of this year, beforereboundingin 2017.

The report forecasts 2.3 per cent growth in Alberta next year second only to B.C.'s mark of 2.5 per cent.

• Alberta should lead in GDP growth for next 2 years, TD forecasts
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BMO senior economist BenjaminReitzessaidAlberta's economy bounced back slightly in the third quarter of 2016and he expects the trend to continue into the new year.

"You're seeing kind of some very early signs that broader investment is improving, that oil prices look as though they've bottomed and they're back over $50 today,so that's good news," he said.

But, he cautioned: "We're not expecting an investment boom,by any means."

"A return to the robust fourper cent to five per centgrowth clip seen prior to the oil price shock is unlikely in the near term," BMO chief economist and managing director Douglas Porter says in the report.

Last month,TD Economics releaseda report forecasting that Alberta's real GDPwould grow by 2.2 per cent in 2017 and 2.3 per cent in 2018.

"The good news for Alberta is that the worst is in the rear-view mirror," that report read.

The TD report predicted Alberta's GDP growthwould be the highest of all provinces for the next two years,but also noted thatit wouldmarkonly "a muted rebound" from the economic tailspin the province has been in since oil prices crashed in late 2014.

"While certainly an improvement, the pace of growth is only about half that recorded coming out of the previous recession and economic activity will still fall short of 2014 levels," it reads.