CALGARY — The Conference Board of Canada says a recession is unavoidable in Alberta this year.
The Ottawa-based economic think-tank says even though oil prices have stabilized around US$60 a barrel, Alberta's economy will shrink by 0.7 per cent in 2015.
It says oil prices are well below break-even levels for most new projects and things aren't expected to get better until next year.
The board expects 24,000 job losses in the construction and mining sectors, which will, in turn, hurt the housing market and retail sales.
But the job market in other non-energy sectors appears to be holding up relatively well and the unemployment rate in the province is expected to average 5.6 per cent this year, lower than the national average.
The forecast did not incorporate potential changes under the new provincial NDP government, such as higher corporate taxes and royalties.
