by Darren Sharko (for the Edmonton Sun, January 9th, 2011)

Alberta’s economy continues to recover from its severe recession with real GDP set to grow 3.4% in 2010 and then galloping to a solid 4.3% in 2011, according to the latest Provincial Outlook report from RBC Economics.

In 2011, RBC projects that Alberta’s economic growth will be second only to Saskatchewan, representing the fastest growth in the province since 2006. Alberta’s strong forecast is owed to improvements in a number of areas, particularly the booming energy sector and increased job creation since spring which helped to bring down the stubbornly high unemployment rate.

“Improvements in the employment market helped reverse the net migration outflow to other provinces that earlier slowed population growth to the lowest rate in 15 years,” said RBC senior vice-preisdent and chief economist Craig Wright.

“These are the kinds of turnarounds that will spread the recovery more widely throughout Alberta’s economy next year.”

The RBC report notes Alberta’s employment sector is expected to lead the country with a rise of 2.3% in 2011, up significantly from a scant 0.5% in 2010.

The anticipated increase represents the creation of 37,000 jobs and will usher in the highest total of new employment opportunities since 2007 which should ultimately contribute to a boost in population growth.

“With interest in developing Alberta’s oilsands growing ever higher, the gush of capital spending on megaprojects is expected to continue next year and beyond,” said Wright.

“This will pump tremendous activity into the provincial economy and act as a catalyst for both faster job growth and stronger migration from outside the province.

For more information or for personalized mortgage service contact Darren Sharko, your RBC Royal Bank mortgage specialist serving clients in Edmonton and area, at 780-441-9998, or email him at darren.sharko@rbc.com