The Alberta Advantage
Alberta is blessed with an abundance of natural advantages that form the foundation of its thriving economy. The Alberta government has built on this foundation by fostering a positive business climate based on low taxation that attracts investment, creates diversity, and encourages Alberta businesses to compete successfully around the globe.
This foundation includes:
- a strong and diversified economy,
- a globally competitive business tax environment
- an efficient and modern infrastructure
- strategic access to the North American free trade market and to North Asian markets, population
- political stability and low taxes
- a young, skilled and productive workforce,
- the lowest overall personal taxes in Canada,
- a fiscally responsible government with no net debt
- a government that understands and works closely with business,
- safe communities with a superior quality of life and diverse cultures.
Population Growth
Alberta’s population grew by 3.1% in 2007, more than tripling the national growth rate of 1.0%. Between July 1, 2006 and July 1, 2007, Alberta’s population grew by 103,384 with migration accounting for more than three quarters of this increase.
Housing Market Highlights
- The average apartment vacancy rate in Alberta's centres with a population of 10,000 or more was 1.6 per cent in October 2007
- The total average rent in Alberta was $913 per month, up from the $781 reported in the October 2006 CMHC survey
Capital Projects Planned for Alberta as of March 2008: OVER $250 Billion!
Project Type |
# Of Projects | Value Of Projects ($ millions) |
Agriculture & Related |
7 | $83.0 |
Biofuels |
17 | $2,324.0 |
Chemicals & Petrochemicals |
5 | $442.0 |
Commerical/Retail |
124 | $8,625.4 |
Commerical/Retail & Residential |
14 | $4,485.8 |
Forestry & Related |
2 | $72.0 |
Infrastructure |
284 | $17,111.5 |
Institutional |
211 | $13,232.9 |
Manufacturing |
1 | $12.0 |
Mining |
7 | $2,945.4 |
Oil & Gas |
15 | $4,140.0 |
Oilsands |
52 | $162,609.0 |
Other Industrial |
11 | $160.4 |
Pipelines |
37 | $11,943.8 |
Power |
42 | $10,971.0 |
Residential |
138 | $6,439.3 |
Tourism/Recreation |
109 | $9,319.5 |
TOTAL |
1076 | $254,917 |
1. This inventory lists projects in Alberta valued at $5 million or greater that have recently been completed, are currently under construction, or are proposed to start construction within two years. Not all projects over this threshold are listed due to reasons of confidentiality and/or due to information not being available at the time of the compilation of this chart. |
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Comparative Real GDP Growth: US, Canada, and Alberta
Sources: 2006-2007: Statistics Canada, Bureau of Economic Analysis, 2008-2009 (and Alberta for 2007): average of recent forecasts by Conference Board of Canada, Global Insight and major Canadian banks
Real Economic Growth 1996-2006 (average annual % GDP growth)
Over the past decade, Alberta has had the highest rate of economic growth at 4.3%.
Source:Statistics Canada
Key Economic Sectors
Alberta’s economy continues to thrive on its expanding technology, manufacturing and services sectors. In fact, these activities account for two-thirds of the province’s total economic output.
Information, Communications and Technology (ICT) Industries
- Revenues for Alberta’s ICT industries totaled approximately $9.4 billion in 2006.
- The high-speed Alberta SuperNet provides broadband internet access to 429 communities. The SuperNet has the capacity to bring high-speed Internet access to more than 86% of Alberta’s population
Industrial and Consumer Products
- The value of industrial and consumer products manufactured in 2006 totaled $15.9 billion, more than doubling in the past 10 years.
- The electronics, furniture, plastics, machinery, construction materials and fabricated metals industries continue to diversify Alberta’s economy.
Agri-foods
- Manufacturing shipments from the food and beverage industry were valued at $9.6 billion in 2006.
Energy
- Alberta produces about 81% of Canada’s natural gas and 68% of its crude oil.
- Manufacturing shipments of energy-related products (petrochemicals and refined petro reached $28.4 billion in 2006) reached $28.4 billion in 2006.
Forest Products
- Alberta produces $5.1 billion in forest products.
- With over 300 large and small mills in operation, the industry manufactures products such as lumber, pulp, newprint, panelboard and products.
Tourism
- Alberta offers internationally-recognized destinations, natural scenic beauty and world-renowned national parks.
- The tourism industry generatedan estimated billion in revenues in 2005.
Economic Diversity in 2006: % Distribution Of GDP
Competitive Business Environment
- The Alberta government’s low-tax and fiscal responsibility policies create long-term economic benefits for Albertans. Alberta’s international competitiveness and fiscal stewardship form a solid foundation upon which the Government of Alberta’s value-added strategy will accelerate the on-going diversification of the province’s economy.
- With recent tax changes, Alberta has one of the most competitive business tax environments in North America. The Government of Alberta reduced its general corporate income tax rate to 10% in 2006. Effective January 1, 2008, the combined federal/provincial income tax rate will be 29.5%. The Government of Canada is also planning a further phased reduction in the general corporate income tax rate from 19.5% in 2008 to 15% in 2012. The new income tax rates combined with the fact that Alberta has no provincial capital taxes, no payroll taxes, no sales tax, and has a publicly funded health care insurance system makes Alberta’s tax environment very competitive.
