Calgary prone to expertise slight financial downturn in 2024, new projections present

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Calgary and Alberta are headed for a 12 months of dampened progress, however each are much less liable to falling sufferer to financial headwinds than different areas of Canada, new forecasts present.

“(Calgary is) most likely higher positioned than a variety of different communities or jurisdictions round North America … however I’m not gonna lie, I believe we’re going to see some headwinds in 2024,” Brad Parry, president and CEO of Calgary Financial Improvement and CEO of Alternative Calgary Funding Fund, stated in a Wednesday interview.

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GDP progress in Alberta, projected to hit 2.7 per cent this 12 months, is anticipated to drop to 2 per cent in 2024, in response to projections by ATB Monetary.

Parry stated Calgary has seen a slight slowdown in enterprise capital funding in 2023, which hit a file $647 million final 12 months. Nonetheless, he stated the province seems to be on tempo to beat final 12 months’s thresholds in that class, he stated.

The change he’s seeing is that companies are not outgrowing Calgary, Parry stated.

“The massive distinction is … corporations don’t want to depart Calgary now to develop and scale their corporations. There’s enterprise capital, there’s expertise, there’s all these issues that permit us to proceed to draw funding.”

The town has progressed on diversifying its enterprise scene to broaden past oil and fuel, he stated, nevertheless it’s nonetheless a distance away from the place Parry want to be.

“I believe we’re youngsters, if I had to consider it,” he stated. “We’ve established ourselves.”

The projected financial slowdown will largely be because of world inflation and excessive rates of interest, stated Curtis Unusual, president and CEO of ATB Monetary.

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“With headwinds constructing, we anticipate progress to gradual subsequent 12 months, earlier than selecting up once more in 2025,” Mark Parsons, vp and chief economist at ATB monetary, stated in a Wednesday information launch.

However nonetheless, Calgary and Alberta are in an “enviable” place for his or her useful resource sector and various industries, stated Stephen Poloz, particular advisor at Osler and former Governor of the Financial institution of Canada.

Parry maintained that his place for Calgary and the province in 2024 is “cautiously optimistic.”

“We’re not on the pinnacle … I nonetheless suppose we’ve bought a protracted solution to go,” he stated. “It’s that sense of optimism with the varieties of applied sciences which can be being developed in our metropolis which can be actually going to set us aside.”

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