Are the Provinces Catching Up?

Contrasting economic results have come out of the provinces in recent years. The oil-producing provinces were affected by the energy sector’s problems. But the other provinces actually benefited from the wealth effect of lower fuel prices and have been growing nicely. Growth has even sped up in some provinces that are usually weaker, such as Quebec. With such differences, are the less prosperous provinces catching up to those that have traditionally been wealthier? The fundamental trends that influence growth potential in each province have not really changed, however. We believe that a major catch-up is not very likely. That said, the widespread economic growth expected in the provinces for 2017 and 2018 is very satisfying and reassuring.