West Coast Pipeline Predictions May Be Optimistic, Says TD Economics

A new oil pipeline to the West Coast would give Canada and Alberta's economies a boost, according to TD Economics. However, the predicted increase may be more modest than initially thought.

The government has forecasted that the project will contribute 0.6% to the national economy by the 2040s and 3.5% to Alberta's GDP by the same time. But TD Economics suggests these numbers 'may lean optimistic' due to conservative assumptions.

Using more realistic projections, TD estimates a 3% increase in Canada's GDP and 2% for Alberta. While this is still considered a significant contribution to growth, it falls short of initial expectations.

The pipeline's development has been driven by the need to export oil across the Pacific. However, Asia's long-term demand may be impacted by growing adoption of electric vehicles and clean energy in China.