Cars are a vital part of the Canadian culture, not to mention the economy. The recent recession had a devastating impact on automobile manufacturers and sales in North America. However, with the economy on the rebound, sunnier days are in sight for the Canadian auto industry.
British Columbia and Alberta, the country's westernmost provinces and both with resource – dependent economies, were hit extremely hard when commodity prices took a nosedive during the recession. However, with the demand for natural resources rapidly returning, the economy in the west is improving and car sales will follow suit. Industry experts predict that new car sales in British Columbia will rise by 5% in 2010 and by 10% in Alberta. This is a major recovery following a dismal 2009 ending in sales declines of 15% in B.C. and 21% in Alberta.
Growing consumer confidence in the nation's economy, coupled with global recovery, is expected to fuel positive sales figures across the nation. Projections for the current year anticipate auto sales to climb to 1.53 million units, 10% higher than sales figures for 2009.
Another province expected to contribute to the rise in sales figures is Saskatchewan. Although the province holds the record for the oldest vehicle fleet in the country – average age exceeding 11 years – auto sales are still 12% above the average. In general, growth in the province has exceeded the national average for the last three years.
On the other end of the scale, Quebec is expected to show only a moderate increase in auto sales of no more than 3%. The province currently has more new vehicles per capita than any other province.
Whether the contributing factor is a recovering economy, a relaxation of credit restrictions, or even purchases for the upcoming Winter Olympics, the fact is that Canadians love their new cars and, having weathered the global storm, it's time to go shopping.
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Showing posts with label Alberta Economy. Show all posts
Showing posts with label Alberta Economy. Show all posts
Tuesday, February 2, 2010
Sunday, September 20, 2009
Alberta Faces Record Deficit
With natural gas prices continuing to fall, Alberta's energy boom has come to an end. The immediate result is a growing deficit that has no immediate relief in sight. The latest forecast, revised from earlier predictions this year, indicate a record $7 billion deficit by year's end. Some economists believe that continuing weak gas prices will send the deficit above the $8 billion mark. This dour prediction is based on the assumption that the province is being overly optimistic about tax revenues. It is widely believed among economists that corporate taxes will fall well below figures recently published by the province's Progressive Conservative government.
Alberta's Finance Minister Iris Evans has issued orders to provincial offices to trim $430 million from provincial programs. The government itself is seeking to trim $2 billion from next year's budget.
The province's premier Ed Stelmach warned that the deficit is likely to remain in place for at least two years following the recession. However, he also announced that the deficit will be offset by $17 billion in emergency savings in the provincial Sustainability Fund. This amount will likely deplete the fund. However, it will enable the Premier to not implement any tax increases nor will the province have to cut jobs. The weakened economy has already contributed to a predicted jobless rate of 22,000 this year. Adding to the gloomy outlook is a forecast of negative 2.5 percent growth for the current year.
Despite a sorry economic forecast, the province is pleased to note that its population is continuing to grow. Economic hardships in other regions of the nation have caused a migration to Alberta. The premier announced that his province's population is expected to grow by 50,000 residents this year.
On the positive side, the provincial Heritage Savings Trust Fund suffered a $3 billion beating when the stock markets plunged. Recently, though, the Fund has shown a $1 billion recovery, allowing the province to transfer $730 million from the Fund's profits to the province's general revenues.
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Alberta's Finance Minister Iris Evans has issued orders to provincial offices to trim $430 million from provincial programs. The government itself is seeking to trim $2 billion from next year's budget.
The province's premier Ed Stelmach warned that the deficit is likely to remain in place for at least two years following the recession. However, he also announced that the deficit will be offset by $17 billion in emergency savings in the provincial Sustainability Fund. This amount will likely deplete the fund. However, it will enable the Premier to not implement any tax increases nor will the province have to cut jobs. The weakened economy has already contributed to a predicted jobless rate of 22,000 this year. Adding to the gloomy outlook is a forecast of negative 2.5 percent growth for the current year.
Despite a sorry economic forecast, the province is pleased to note that its population is continuing to grow. Economic hardships in other regions of the nation have caused a migration to Alberta. The premier announced that his province's population is expected to grow by 50,000 residents this year.
On the positive side, the provincial Heritage Savings Trust Fund suffered a $3 billion beating when the stock markets plunged. Recently, though, the Fund has shown a $1 billion recovery, allowing the province to transfer $730 million from the Fund's profits to the province's general revenues.
Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®
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