Edmontonians reached the height of their economic prosperity in 2014, took a major hit after that, and won’t reach that 2014 level again until the 2030s, says John Rose, chief economist of the City of Edmonton.

“It’s going to be a long hard grind, and for a lot of people it’s going to be a real adjustment to get used to the fact that we’re not going back into another boom,” Rose said, speaking to reporters at the Economic Society of Northern Alberta conference in Edmonton.

Prosperity is measured in our Gross Domestic Product per capita. “You have to think of that as the total resources available for an individual in the city of Edmonton, and that’s for government to provide services to that individual, for their income, for their savings and for their housing,” Rose said. “That flow of flow of wealth, GDP per capita, peaked in 2014 and came down quite significantly in 2015 and 2016 as the Edmonton economy contracted and our population continued to grow.”

A slow recovery is now going on, with GDP rising in a modest manner and projected to do so into the future, but our population also continuing to rise.

“When you average the available GDP, the available wealth, across the population, it’s slow to recovery,” Rose said. “Right now given the longer terms estimates we have for GDP in the city of Edmonton, we’re talking the 2030s before we get back to the levels of GDP per capita, level of overall wealth available to support an individual citizen that we had in 2014.”

Biggest laugh of the morning at the Economics Society of Northern Alberta conference?

“It’s a great time to be a pipeline!” says Jim Campbell of the Canadian Energy Pipeline Association.

— David Staples (@DavidStaplesYEG) December 6, 2018

“We are beholden to one market — 99 percent of our product flows to the US,” says Stringham of CAPP, adding this is not a good business strategy for Canadian oil.

— David Staples (@DavidStaplesYEG) December 6, 2018

“We are seeing historic challenges in building pipelines that our competitors are not seeing” says Stringham of the Canadian Association of Petroleum Producers, saying investors not interested in Canada due to uncertainty around pipelines and Bill C69, new proposed federal regs.

— David Staples (@DavidStaplesYEG) December 6, 2018

…read more

Source:: Edmonton Journal – Business

      

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‘It’s going to be a long, hard grind’: Edmontonians won’t return to boom time level of wealth until 2030s

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