Fort McMurray wildfire recovery to spur $5.3 billion in spending, report says
CALGARY — The massive efforts to respond to and rebuild after the wildfire of Fort McMurray, Alta., will spur economic growth in the coming years but leave insurance companies and governments with a tab of more than $5 billion, says a new report.
The Conference Board of Canada said in a paper released Tuesday that the spending will add 0.4 per cent or $1.1 billion to Alberta’s GDP next year, followed by growth of 0.2 per cent and 0.1 per cent in 2018 and 2019, respectively.
The ramp-up in reconstruction, needed to rebuild the nearly 2,000 homes and businesses destroyed by the May fire, is also expected to create about 9,000 jobs next year and cut a 0.1 percentage point off the unemployment rate.
The report concluded that the economic boost from spending on the fire this year will be more than offset by lost oilsands production as companies were forced to shut down operations, shaving off 0.1 per cent or $456 million from Alberta’s GDP.