02/17/2015 11:15 EST | Updated 04/19/2015 05:59 EDT

Alberta Recession Will Be Mild And Short-Lived: CIBC

Man holding placard about recession
GSO Images via Getty Images
Man holding placard about recession
TORONTO - A report by CIBC predicts Alberta is headed for a mild and short-lived recession due to the sharp drop in oil prices.

The big Canadian bank predicts the cuts in capital spending by the big oil companies will mean at least two quarters of negative growth for the province.

CIBC forecasts Alberta's real gross domestic product to shrink by 0.3 per cent this year before growing by 2.3 in 2016.

The unemployment rate in Alberta is expected to climb to 6.8 per cent from 4.8 per cent last year.

CIBC is also predicting the economy in Newfoundland and Labrador will shrink by 1.0 per cent this year and 0.5 per cent in 2016.

Central Canada and B.C. are expected to lead the growth with the economy as a whole expected to grow 1.9 per cent this year and 2.5 per cent in 2016.

Ontario is expected by 2.8 per cent in 2015 and 2016, while Quebec is predicted to grow by 2.4 per cent this year and 2.6 per cent next year.

B.C. is forecast to grow by 2.5 per cent in 2015 and 2.7 per cent in 2016.

Also on HuffPost

Photo galleryAlberta's Biggest Best Employers See Gallery