RSM Canada, a leading global provider of audit, tax and consulting services focused on middle market businesses, today launched its first 2022 edition of "The Real Economy, Canada" - a quarterly report that provides Canadian businesses with economic analysis and insights into factors driving growth, or economic headwinds, in Canada's middle market.
"Canada’s economy has had a bumpy ride over the past year, as the promise of mass vaccinations was followed by supply chain disruptions, a global energy crisis and rising inflation," says Tu Nguyen, economist and ESG director with RSM Canada.
"Looking ahead, we see a Canadian economy continuing to recover, even as businesses and consumers contend with challenges like the omicron variant of the coronavirus."
- Canada's energy industry will continue to ride its 2021 wave, with forecasts of record oil production this year.
- Global oil demand is forecasted to increase by 3.3 million barrels per day this year to pre-pandemic levels of 99.5 million barrels, increasing demand for Canadian supply.
- The estimated 7,000 new jobs that Canada will see from new drilling operations may exacerbate the skilled labour shortage that the oilfield services sector has been experiencing, with increased wages not being sufficient to attract a younger generation valuing greater work-life balance.
- Regulatory risks remain a concern for the oil industry, with cross-border tensions carrying over from 2021 due to continued U.S. efforts to shut down the Enbridge Line 5 pipeline.
- This could impact several pipeline jobs in Alberta such as Welding, Pipefitters, Heavy Equipment Operators, Labourers, and Safety.
Meanwhile, an article in the Edmonton Journal claims that A windfall from high oil and gas prices could hand Alberta’s government at least a $511 million surplus in 2022-2023.
The government is basing its budget projections on an average West Texas Intermediate (WTI) price per barrel of US$70 in 2022-23, while WTI continued to trade above US$90 a barrel Thursday.