Tragedy in Fort McMurray highlights importance of oilsands to economy: economist
Posted May 9, 2016 4:23 pm.
This article is more than 5 years old.
CALGARY (NEWS 1130) – The economic impact of the Fort McMurray fire is still being tallied, but one economist says it will likely put into focus for people across the country just how important the oilsands are.
ATB Chief Economist Todd Hirsch said the national GDP will be hit hard.
“Once we start to see the second quarter numbers for the Canadian economy, the national accounts, and could actually see the Canadian economy shrink in the second quarter because of this forest fire,” Hirsch explains. “I think it will drive home the point for many Canadians, who maybe don’t realize it — the importance of the oilsands.”
He said insurance companies will also take a big hit.
One the country’s biggest, Intact Financial, released a statement Monday saying it alone could see insured losses of $1.1billion.
Hirsch also added that people forget that an entire city has shut down.
“A community of 90,000 people, those businesses are shut down and it’s undetermined how long in fact it will be until people are allowed to go back,” Hirsch said. “So that is a major hit to several businesses in that community that will have to operate with no revenue for quite some time.”
