#1Highlights of the Alberta Economy Alberta Finance and Enterprise Enterprise Division October 2008 Alberta Finance and Enterprise#2Alberta: The Best Place to Live, Work and Do Business • High Level Fort McMurray . ⚫ Peace River CANADA Grande Prairie USA MEXICO ALBERTA Edmonton O Jasper ⚫ Red Deer Banff • Calgary Medicine Hat ❤ Lethbridge Alberta Finance and Enterprise#3Table of Contents Economic Highlights - - - Growth in selected indicators Economic diversity Investment Exports • A Diversified and Rich Economy - Energy - - - - Agriculture - Forestry Manufacturing - Information and Communications Technology - Tourism Alberta Finance and Enterprise#4Table of Contents (cont.) • Doing Business in Alberta - - - - - - - Innovation and Entrepreneurship Research and Development Government Educated Work Force - Productivity Taxes Workers' Compensation Alberta Finance and Enterprise#5Table of Contents (cont.) • Working in Alberta Strong Labour Market - Taxes - - Family Income Economic Well-being Living in Alberta - - - - - - People Education Health Care Arts and Culture - Sports and Recreation Volunteerism Alberta Finance and Enterprise#6Economic Highlights Growth In Selected Indicators: 1997 - 2007 Per Cent Change 24.1 Population 10.1 Employment GDP Exports* Investment ☐ Canada Alberta 35.0 23.1 38.3 48.0 49.9 91.8 *Goods Exports Source: Statistics Canada and Alberta Finance and Enterprise 145.3 Growth 172.5 Alberta Finance and Enterprise#7Economic Highlights Economic Diversity Economic Diversity: 1985 Percentage Distribution of GDP Total GDP: $66.8 Billion Economic Diversity: 2007 Percentage Distribution of GDP Total GDP: $259.9 Billion Construction 6.7% Construction 9.0% Agriculture Agriculture 3.0% Energy Energy 1.9% Health 27.2% 36.1% 3.6% Health 4.0% Education 3.6% Public Admin. 4.8% Education 3.5% Public Admin. 3.1% Ret. & Whis 8.1% Manufacturing 6.0% Tourism & Cons. Transp. & Util 7.7% Ret. & Whls 9.0% Serv. Tourism & Cons. Finance & Real Bus. & Comm. 3.8% Serv. Estate Services Finance & Real Estate 5.1% 11.0% 5.5% 13.8% Source: Alberta Finance and Enterprise Manufacturing 8.2% Transp. & Util 6.4% Bus. & Comm. Services 8.6% Alberta Finance and Enterprise#8Total Investment in Alberta Capital Expenditures ($ Billions) 2002 3.7 7.4 13 18.6 42.6 2003 3.1 7.7 13.7 20.2 44.7 2004 3.7 8.1 14.5 2005 4.7 9.7 16.5 2006 5.5 12.4 19.0 2007 7.1 14.6 21.3 2008* 8.4 13.9 24.2 24.5 34.1 Economic Highlights Attractive Investment Climate 50.8 40.0 37.7 37.3 Institutions Housing Non-energy Oil & Gas * Intentions Source: Statistics Canada 65.0 76.9 80.7 83.8 Alberta Finance and Enterprise#9Economic Highlights Alberta's Major Exports 2007 Exports Total Exports of Goods and Services: $90.5 Billion Crude Petroleum Gas and Gas Liquids 26.3 Services 8.4 Petrochemicals 7.2 Metals & Machinery 5.8 Crops & Livestock 3.8 Processed Food & Beverages 2.7 Forest Products 2.2 Electronic & Electrical Products 1.4 Refined Petroleum Products 1.3 Sources: Statistics Canada and Alberta Finance and Enterprise $ Billions 28.4 Alberta Finance and Enterprise#10A Diversified and Resource-Rich Economy Alberta's Energy Revenues 2007 Total: $79.1 Billion Alberta's Energy Exports 2007 Total: $55.5 Billion Natural Gas & Gas Liquids 51.1% Crude Oil 48.0% Coal and Sulphur 0.9% Natural Gas & Gas Liquids 47.3% Crude Oil 51.1% Sources: Statistics Canada, Energy Resources Conservation Board, Alberta Finance and Enterprise Energy Coal and Sulphur 1.6% Alberta Finance and Enterprise#11A Diversified and Resource Rich Economy Beef Cattle *Others Canola & Flax Wheat Alberta's Major Agricultural Products 2007 Farm Cash Receipts ($ Billions) Total: $8.7 Billion Hogs 0.51 Dairy 0.39 0.33 1.26 1.10 Oats, Rye & Barley *Includes specialty cash crops, honey, poultry, eggs, program payments, etc. Source: Statistics Canada 2.10 Agriculture 3.08 Alberta Finance and Enterprise#12A Diversified and Resource Rich Economy Shipments of forest products reached $4.7 billion in Forestry 2007, and exports were $2.2 billion*. Alberta covers over 66 million hectares of land, 58% or 38 million hectares of which is forested. Of the forested area, about 60 per cent or 22.5 million. hectares are considered suitable for harvest. Annually, Alberta allows 25.9 million cubic meters (m³) to be harvested, of which 14.7 million m3 is coniferous, and 11.2 million m³ is deciduous. Alberta's commercially productive timber land base of 22.5 million hectares covers 35 per cent of Alberta's total area and includes in excess of 2.2 billion m3 of growing stock. * Includes wood products and pulp & paper • Edronien ■ Calgary Alberta Finance and Enterprise#13A Diversified and Resource Rich Economy Value of Alberta Manufacturing Shipments 2007 Total: $67.1 Billion Manufacturing Refined Petroleum Chemical Products Food Machinery Fabricated Metals *Forest Products 1.6 Construction Materials Plastics **Electronic Prod. 1.1 Furniture & Fixtures 1.0 Other 2.4 54 5.1 4.7 6.2 6.2 *Includes wood and pulp & paper industries **Includes telecom equipment Source: Statistics Canada 14.0 10.0 14.8 $ Billions Alberta Finance and Enterprise#14A Diversified and Resource Rich Economy Information and Communication Technologies Norway South Korea Canada* Japan** Germany U.K. France Italy * 2007 data 82.5 78.3 Internet Usage - International 2006 76.9 74.9 Percentage of Adults aged 16 to 74 Accessing the Internet 72.2 68.8 46.9 British Columbia 38.0 Alberta Ontario Canada 78 77 75 73 ** 2005 data Internet Usage - Canada 2007 Percentage of Adults aged 16 and over Accessing the Internet Saskatchewan 73 Manitoba 70 Nova Scotia 69 Quebec 69 Prince Edward Island New Brunswik 69 65 Newfoundland and Labrador 61 Sources: Statistics Canada and OECD Alberta Finance and Enterprise#15A Diversified and Resource-Rich Economy Other Canadian 24% Tourism Receipts 2006 Total: $5.15 Billion Alberta 48% Source: Statistics Canada United States 13% Overseas 15% Tourism Alberta Finance and Enterprise#16Doing Business in Alberta Innovation and Entrepreneurship Small Business - Cornerstone of the Economy 2002 - 2007 Percentage Change in Small Business Establishments (Less than 50 Employees) -11.4% -8.9% 8.6% Alberta 7.4% 6.7% 5.0% 3.4% -1.0% -1.9% -2.8% -4.8% Source: Canadian Business Patterns, Statistics Canada British Columbia Ontario Newfoundland and Labrador Canada Nova Scotia Quebec Manitoba New Brunswick Saskatchewan Prince Edward Island Alberta Finance and Enterprise#17Doing Business in Alberta Research & Development Advanced Technology Institutes & Facilities: • National Institute for Nanotechnology . ⚫TRLabs (Telecommunications Research Laboratories) • • Alberta Science and Research Authority (ASRA) Alberta Research Council • Cybera • National Institute for Nanotechnology • Network for Emerging Wireless Technology (NEWT) Alberta Ingenuity Centre for Machine Learning Alberta Finance and Enterprise#18Doing Business in Alberta Government Provincial Net Financial Assets/Debt as a per cent of GDP, March 31, 2008 14.9% Alberta Saskatchewan British Columbia Manitoba Ontario New Brunswick Nova Scotia -12.3% -18.4% -21.5% -24.5% -26.4% -27.5% Canada -29.9% Prince Edward Island Newfoundland & Labrador -39.8% -30.1% Quebec -41.8% Note: Other Governments as of March 31, 2008. Excludes Pension Liabilities. Source: Alberta Finance and Enterprise Alberta Finance and Enterprise#19Alberta British Columbia Ontario Canada Saskatchewan Nova Scotia Manitoba Prince Edward Island Quebec New Brunswick Newfoundland and Labrador Doing Business in Alberta Educated Work Force Composite Learning Index 2008 85.3 80.3 79.9 77.1 76.4 75.1 74.8 72.2 69.3 67.8 67.7 Source: Canadian Council on Learning Alberta Finance and Enterprise#20Doing Business in Alberta Productivity (Total Economy) Labour Productivity 2007 Real GDP per Hour Worked, in 2002 constant dollars Alberta Newfoundland and Labrador Ontario Canada Saskatchewan Quebec British Columbia Manitoba Nova Scotia New Brunswick Prince Edward Island Source: Statistics Canada, Alberta Finance and Enterprise $48.72 $46.39 $41.99 $41.22 $40.99 $39.55 $38.74 $36.17 $33.47 $32.37 $30.80 Alberta Finance and Enterprise#21United States January 2008 Doing Business in Alberta Competitive Corporate Taxes Comparison of Corporate Income Taxes 32.7% 6.3% 39.0%* Alberta January 2008 19.5% 10.0% 29.5% Alberta 2012 15.0% 10.0% 25.0% ☐ Federal Provincial / State *6.3% represents the average effective top general state corporate income tax rate U.S. rates known as of January 2008 Source: Alberta Finance and Enterprise & Federation of Tax Administrators Alberta Finance and Enterprise#22Provincial Corporate Income Tax Rates (per cent) Doing Business in Alberta Provincial & State Corporate Taxes State Corporate Income Tax Rates (per cent) Manufacturing Province General & Processing Small Business Manufacturing Small Business State General & Processing (b) Newfoundland and Labrador 14.0 5.0 5.0 Washington (a) n/a n/a n/a Prince Edward Island 16.0 16.0 3.5 Oregon 6.6 6.6 6.6 Nova Scotia 16.0 16.0 5.0 California 8.84 8.84 8.84 New Brunswick Quebec 13.0 13.0 5.0 North Dakota 6.5 6.5 6.4 11.4 11.4 8.0 Ontario 14.0 12.0 5.5 05 Montana 6.75 6.75 6.75 Manitoba 13.5 13.5 2.0 Idaho Colorado 7.6 7.6 7.6 4.63 4.63 4.63 Saskatchewan 12.5 10.0-12.5 4.5 Utah 5.0 5.0 5.0 Alberta 10.0 10.0 3.0 New Mexico 7.6 7.6 4.8 British Columbia 12.0 12.0 4.0 Louisiana 8.0 8.0 7.1 Federal Rates as of May 1, 2008 Effective July 1, 2008 19.5 22.12 11.0 Federal 35.0 35.0 34.0 (a) Washington has a business occupation tax in lieu of an income tax, which is based on gross revenue sales (0.471% to 1.5% according to the type of business. (b) State small business rate is the effective tax rate for US$400,000 (comparable to Alberta threshold of Cdn$430,000) U.S. federal small business rate is the effective rate for US$372,000 (comparable to 2006 anadian federal threshold of Cdn$400,000). Source: PWC Tax News Network, Federation of Tax Administrators Alberta Finance and Enterprise#23Doing Business in Alberta Provincial Capital and Payroll Tax Rates Provincial Capital and Payroll Tax Rates (Maximum Per Cent) Capital Tax Province (General) Payroll Tax Alberta British Columbia Saskatchewan Manitoba 0.40 2.15 Ontario 0.225 1.95 Quebec 0.36 4.26 New Brunswick 0.10 Nova Scotia 0.20 Newfoundland and Labrador 2.00 Prince Edward Island I Rates effective July 1, 2008 Source: Budget 2008, Alberta Finance Alberta Finance and Enterprise#24Doing Business in Alberta Workers' Compensation Board Premiums Workers' Compensation Board Premiums 2008 Assessment Rates* Per $100 Payroll Alberta 1.32 1.56 1.60 British Columbia Manitoba Saskatchewan New Brunswick Quebec Prince Edward Island Ontario Nova Scotia Newfoundland and Labrador * Provisional as of January 1, 2008 Source: Association of Workers' Compensation Boards of Canada 1.69 2.05 2.14 2.15 2.26 2.65 2.75 Alberta Finance and Enterprise#25Doing Business in Alberta Workers' Compensation Board Premiums (Western States) Workers' Compensation Board Premium 2008 Assessment Rates* Per $100 Payroll Alberta Oregon Idaho Washington Nevada California Montana $1.32 $1.88 $2.08 $2.19 2.43 *Rates in effect or proposed as of January 1, 2008 Note: 1 US$ = 1 Cdn$ Source: Oregon Department of Consumer and Business Services $2.79 3.73 Alberta Finance and Enterprise#26Working in Alberta Strong Labour Market Unemployment Rates (%) by Province: 2002 - 2007 4.5 Alberta 3.5 5.3 Saskatchewan 4.2 6.9 British Columbia 4.2 4.9 Manitoba 4.4 6.7 Ontario 2002-2006 6.4 8.5 Quebec 2007 7.2 9.8 New Brunswick 7.5 8.8 Nova Scotia 8.0 11.2 10.3 Prince Edward Island Newfoundland and Labrador Canada 7.1 6.0 Source: Statistics Canada 15.8 13.6 Alberta Finance and Enterprise#27Working in Alberta Low Personal Taxes Top Marginal Personal Income Tax Rates - 2008 Alberta 29.0% 10.0% 39.0% British Columbia 29.0% 14.7% 43.7% Saskatchewan 29.0% 15.0% 44.0% Newfoundland and Labrador 29.0% 16.5% 45.5% Manitoba 29.0% 17.4% 46.4% Ontario 29.0% 17.4% 46.4% New Brunswick 29.0% 18.0% 47.0% Prince Edward Island 29.0% 18.4% 47.4% Quebec 24.2% 24.0% 48.2% Nova Scotia 29.0% 19.3% 48.3% Note: Includes Surtaxes Source: PWC Tax News Network, April 25, 2008 Alberta Finance and Enterprise#28Alberta $4,961 $15,625 British Columbia $6,118 $16,803 Saskatchewan $6,524 $17,187 Ontario $6,807 $17,493 New Brunswick $7,750 $18,399 Quebec $7,674 $18,506 Manitoba $8,009 $18,661 Nova Scotia $8,011 $18,663 Newfoundland & Labrador Prince Edward Island $8,410 $19,071 $8,680 $19,327 Federal Provincial Comparison of Provincial and Federal Taxes by Province Two Income Family of Four - $125,000* *As of March 2008 Source: Alberta Finance Working in Alberta Low Personal Taxes Comparison of Provincial and Federal Taxes by Province Two Income Family of Four - $75,000* Alberta 9,158 $31,398 British Columbia 10,065 $32,339 Ontario 12,031 $34,290 Saskatchewan 12,165 $34,369 Manitoba 14,667 $36,851 New Brunswick 14,826 $36,995 Nova Scotia 15,177 $37,344 Newfoundland & Labrador Prince Edward Island 15,311 $37,505 15,440 $37,618 Quebec 17,595 $40,030 Federal Provincial#29Working in Alberta Family Income 2006 Median After-Tax Family Income Families with Two Persons or More Alberta Ontario British Columbia Canada Saskatchewan Manitoba $70,500 $62,400 $60,300 $58,300 $55,900 $53,900 Nova Scotia $51,600 Quebec Prince Edward Island New Brunswick Newfoundland and Labrador $51,500 $50,000 $47,600 $45,800 Source: Statistics Canada Alberta Finance and Enterprise#30Provincial Comparison 2007 Working in Alberta Economic Well-Being International Comparison 2006 Alberta 0.7778 Norway 0.7433 Alberta 0.7143 British Columbia 0.6132 Canada 0.6080 Denmark Belgium Netherlands 0.7095 0.6779 0.6707 Ontario 0.5863 France 0.6374 Manitoba 0.5831 Finland 0.6344 Prince Edward Island 0.5810 Germany 0.6337 Sweden 0.6249 Quebec 0.5798 Canada 0.5920 Nova Scotia 0.5660 Australia 0.5781 Saskatchewan 0.5615 Italy 0.5503 United States 0.5044 Newfoundland 0.5454 Spain 0.4904 New Brunswick 0.5107 United Kingdom 0.4859 Source: Centre for the Study of Living Standards Alberta Finance and Enterprise#31Alberta Population by Ethnic Origin, 2006 Living in Alberta People Ethnic Origin Number % of Total Population Ethnic Origin Number % of Total Population Total 3,256,355 100.0% Total 3,256,355 100.0% English 885,825 27.2% East Indian 88,165 2.7% German 679,705 20.9% Métis 83,235 2.6% Canadian 667,405 20.5% Italian 82,015 2.5% Scottish 661,265 20.3% Welsh 76,115 2.3% Irish 539,160 16.6% American 64,200 2.0% French 388,210 11.9% Danish 58,825 1.8% Ukrainian 332,180 10.2% Filipino 54,305 1.7% Dutch (Netherlands) 172,910 5.3% British Isles 53,855 1.7% Polish 170,935 5.2% Hungarian 48,665 1.5% North American Indian 169,355 5.2% Austrian 36,480 1.1% Norwegian 144,585 4.4% Spanish 30,995 1.0% Chinese 137,600 4.2% Romanian 26,870 0.8% Swedish 93,810 2.9% Vietnamese 25,170 0.8% Russian 92,020 2.8% Swiss 22,185 0.7% Note: These numbers add up to more than the population due to multiple responses. Source: Statistics Canada, 2006 Census of Population Alberta Finance and Enterprise#32University of Alberta University of Calgary University of Lethbridge * * NAIT & SAIT Public Colleges Private Colleges tttttt Living in Alberta Quality Education Canada's second largest English-speaking university with over 40,000 students**. Extensive research facilities. With about 31,000 students**, U of C is a major research centre. Has a focus on liberal arts and select professional programs (9,400 students**). Among the largest polytechnical institutes in Canada, with over 55,000 students** in total. 14 public colleges with about 84,000 students** in total. 6 private (but publicly funded) university colleges with about 4,800 students** in total. Northern Alberta Institute of Technology and Southern Alberta Institute of Technology ** Full Time and Part Time Students, 2006-2007 Alberta Finance and Enterprise#33Living in Alberta Quality Education Top Scores in Mathematics, Science and Reading 2006 Program for International Student Assessment (PISA) Examinations Average = 500 Mathematics Rank Jurisdiction Score Rank Science Jurisdiction Reading Score Rank Jurisdiction Score 1 Taiwan 549 1 Finland 563 1 Korea 556 23456 7810 Finland 548 2 Alberta 550 2 Finland 547 |Hong Kong 547 3 | Hong Kong 542 3 |Hong Kong 536 Korea 547 4 British Columbia 539 4 Alberta 535 Quebec 540 5 Ontario 537 5 Ontario 534 Netherlands 531 6 Canada 534 6 British Columbia 528 Alberta 530 7 Taiwan 532 7 Canada 527 Switzerland 530 8 Estonia 531 8 Quebec 522 9 Canada 527 9 Japan 531 9 New Zealand 521 Ontario 526 10 Quebec 531 10 Ireland 517 79578 Alberta 530 2 Alberta 550 4 Alberta 535 Canada 527 6 Canada 534 7 Canada 527 45 United States 474 39 United States 489 n/a United States n/a 14 Japan 523 9 28 Germany 504 21 Japan Germany 531 23 Japan 498 502 27 Germany 495 Notes: 1. PISA tests 15-year olds' mathematics, science and reading skills. 2. The rank is out of 67 jurisdictions. Sources: Measuring Up: Canadian Results of the OECD PISA Study, Statistics Canada Alberta Finance and Enterprise#34Selected Health Indicators Per Capita Government Health Expenditures - 2007 ($ 000s) 3.4 30 Day In-Hospital Mortality Rate from Heart Attack (2004- 2007) 30 Day In-Hospital Mortality Rate from Stroke (2004-2007) 4.0 8.4 10.0 Living in Alberta Health Care ☐ Canada Alberta 17.0 *Note: Rates Per 100,000 standardized population Sources: National Health Expenditure Trends, 1975-2007, Canadian Institute of Health Information (CIHI) ; Health Care in Canada and Health Indicators Report, Canadian Institute of Health Information (CIHI), Statistics Canada 18.2 Alberta Finance and Enterprise#35Alberta Ontario British Columbia Manitoba Quebec Saskatchewan Nova Scotia Arts and Culture Private Sector Support of Performing Arts (2006) Per Capita $2.12 $2.00 $5.06 $4.23 $3.77 $3.02 Note: Excludes statistics for Prince Edward Island, Newfoundland and New Brunswick which were suppressed to meet the confidentiality requirements of the Statistics Act. Source: 2006 Performing Arts Survey - Statistics Canada $5.93 Alberta Finance and Enterprise#36Number of Performing Arts Companies Per 100,000 Population (Not-for-Profit Portion of Survey): 2006 1 Living in Alberta Arts and Culture Average Spending on Live Performing Arts: 2006 (Annual Dollars) $152 $124 $112 $109 $101 $99 $98 $74 $73 Nova Scotia $65 $59 Quebec 2.3 Alberta Ontario Alberta 1.5 Canada British Columbia 1.5 British Columbia Newfoundland and Labrador 1.4 Canada 1.4 Saskatchewan Manitoba Saskatchewan 1.1 Quebec Prince Edward Island Manitoba 1.1 Newfoundland and Labrador Nova Scotia 1.1 Ontario 0.9 New Brunswick 1 Note: Excludes Prince Edward Island and New Brunswick statistics which were suppressed to meet the confidentiality requirements of the Statistics Act. Source: Statistics Canada Alberta Finance and Enterprise#37Donation and Volunteer Statistics 2004 Average Annual Donations ($) Average Volunteer Hours 48 Volunteer Rate (%) 45 Living in Alberta Volunteerism 400 175 ☐ Canada Alberta 168 500 Source: Statistics Canada, Canada Survey of Giving, Volunteering and Participating, 2004 Alberta Finance and Enterprise#38Alberta Government Alberta Finance and Enterprise Alberta On-Line Resources www.alberta.ca www.finance.gov.ab.ca www.albertacanada.com Doing Business in Alberta: Investing and Locating Exporting Your Products Industry Sectors Regional Development Community/Market Information Visiting Alberta: Travel Alberta List of Festivals in Alberta Vacation Guides Provincial Parks Tourism Working and Living in Alberta: Immigrating Things to Do Health Care Education Alberta Learning Information Service Advanced Education and Technology www.albertacanada.com/investlocate www.albertacanada.com/export www.albertacanada.com/industries www.albertacanada.com/regionaldev www.albertafirst.com www.travelalberta.ca www.culture.alberta.ca/arts/artsfestivals www.travelalberta.ca/cfforms/freestuff www.cd.gov.ab.ca/enjoying_alberta/parks/planning/gateway/interim2.aspx www.tpr.alberta.ca www.albertacanada.com/immigration www.tprc.gov.ab.ca www.health.gov.ab.ca/ www.education.gov.ab.ca/ www.alis.gov.ab.ca www.advancededandtech.alberta.ca Alberta Finance and Enterprise