The TD Bank says persistently strong oil prices are giving the economies of resource-rich prairie provinces a turbo-boost.
The bank says in a new provincial economic outlook that Alberta will grow a robust 3.6% this year, well above the 2.2 average for the country.
That’s also a full point more than previously expected in the bank’s January forecast.
TD says the impetus is a changed outlook for oil prices, with global crude now anticipated to average about US$100 a barrel for the rest of the year.
Saskatchewan will also benefit, but to a lesser extent, and will see its economy expand by 3.1%.
According to the bank, Alberta and Saskatchewan will be the only provinces in Canada to enjoy growth rates above three per cent in 2012, a feat they will repeat in 2013.
TD upgraded its growth forecast for the nation last month. Monday’s report is a provincial breakdown of the previous national outlook.
The details show the East-West divide in the economy not only continuing, but widening.
Alberta’s lead is 1.1 percentage points above any non-oil resource province, with Prince Edward Island coming in a distant third on the provincial ratings on growth of 2.5% this year.
The most populous provinces, Quebec and Ontario, will continue to struggle with growth rates of 2.0 and 2.1% respectively in 2012, and only slightly better in 2013.
New Brunswick and Nova Scotia will trail the nation in growth this year at 1.7 and 1.8% respectively.
Forecast growth rates for other provinces in 2012 were: British Columbia (2.1), Manitoba (2.1), and Newfoundland (2.4).