Highlights of the Alberta Economy 2011 Alberta Finance and - - PowerPoint PPT Presentation

Highlights of the Alberta Economy 2011

Alberta Finance and Enterprise Enterprise Division

Table of Contents

• Economic Highlights

– Growth – Economic prosperity – Attractive Investment Climate – Exports

• A Diversified, Sustainable and Resource-based Economy

– Energy – Environment – Agriculture – Forestry – Manufacturing – Advanced Technology (Broadband Usage) – Financial Services – Tourism

Table of Contents (cont.)

• Doing Business in Alberta

– Competitiveness – Entrepreneurship – Research and Development – Government – Competitive Corporate Taxes – Provincial and State Corporate Taxes – Educated Work Force

Table of Contents (cont.)

• Working in Alberta

– Strong Labour Market – Low Personal Taxes – Family Income – Standard of living

• Living in Alberta

– People – Education – Health Care – Arts and Culture – Donations and Volunteerism

• Alberta Online Resources

Alberta: The Best Place to Live, Work and Do Business

Economic Highlights Growth

Growth In Selected Indicators: 2000 - 2010 Per cent Change

Source: Statistics Canada and Alberta Finance and Enterprise

73.4

• 3.2

20.4 16.0 11.2 88.0 40.6 27.7 27.4 23.9

Investment Goods Exports GDP Employment Population

Alberta Canada

Economic Diversity: 1985 Percentage Distribution of GDP Total GDP: $66.8 Billion

Sources: Statistics Canada and Alberta Finance and Enterprise

Economic Diversity: 2009 Percentage Distribution of GDP Total GDP: $247.2 Billion

Economic Highlights

Economic Prosperity

Energy 36.1% Manufacturing 6.0%

• Transp. & Util

7.7%

• Bus. & Comm.

Services 5.5% Finance & Real Estate 11.0% Tourism & Cons. Serv. 3.8%

• Ret. & Whls

8.1% Public Admin. 4.8% Education 3.6% Health 3.6% Agriculture 3.0% Construction 6.7% Energy 23.4% Manufacturing 6.5%

• Transp. & Util

7.2%

• Bus. & Comm.

Services 9.6% Finance & Real Estate 14.6% Tourism & Cons. Serv. 5.2%

• Ret. & Whls

9.0% Public Admin. 4.0% Education 3.7% Health 4.9% Agriculture 1.4% Construction 10.6% Please spell out the below abbreviations: Transportation & Utilities Business & Commercial Services Tourism & Consumer Services Retail & Wholesale Public Administration

Source: Statistics Canada

Per Capita Investment (2010)

Economic Highlights

Attractive Investment Climate

$6,732 $7,243 $7,757 $8,112 $8,267 $8,660 $9,815 $9,911 $12,847 $15,161 $18,930

Prince Edward Island Nova Scotia New Brunswick Quebec Ontario Manitoba British Columbia Canada Newfoundland & Labrador Saskatchewan Alberta

* Exports of services are not included in this estimate Sources: Statistics Canada and Alberta Finance and Enterprise

Economic Highlights

Exports

Alberta’s Major Exports 2010* Total Exports of Goods ($77.8 Billion)

$ Billions

2.6 0.9 1.3 1.4 2.1 2.3 3.3 5.1 6.2 13.7 38.8 Others Electronic & Electrical Products Sulphur & Coal Refined Petroleum Products Processed Food & Beverages Forestry Products Crops & Livestock Metals & Machinery Petrochemicals Gas and Gas Liquids Crude Petroleum

Alberta’s Energy Revenues 2010 Total: $73.2 Billion

Sources: Statistics Canada, Energy Resources Conservation Board, Alberta Finance and Enterprise

A Diversified and Resource-based Economy

Energy

Alberta’s Energy Exports 2010 Total: $53.9 Billion

Natural Gas & Gas Liquids 32.5%

Coal and Sulpur 1.5% Crude Oil 65.9%

Natural Gas & Gas Liquids 25.4% Coal and Sulphur 2.4% Crude Oil 72.1%

Diversified and Resource-based Economy Oil Sands and the Environment

Alberta’s oil sands account for about five per cent of Canada’s overall greenhouse gas (GHG) and Canada is responsible for about two per cent of global emissions. Large industrial emitters of GHGs per year must meet mandatory reduction targets, purchase Alberta offset carbon credits or pay $15 per tonne into a clean energy technology fund. Air quality is monitored 24 hours a day, 365 days a year across the province and is rated good in the oil sands region – the highest quality. The Alberta Government has committed $2 billion (CDN) to commercial scale carbon capture and storage projects.

Alberta’s Major Agricultural Products 2010 Farm Cash Receipts ($ Billions) Total: $8.98 Billion

*Includes specialty cash crops, honey, poultry, eggs, program payments, etc. Source: Statistics Canada

A Diversified and Resource-based Economy

Agriculture

0.19 0.37 0.48 1.13 1.71 2.04 3.07 Oats, Rye & Barley Hogs Dairy Wheat (incl. Durum) Canola & Flax Other Receipts* Beef Cattle

Shipments of forest products reached $4.0 billion in 2010, and exports were $2.3 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. Alberta's commercially productive timber land base of 26.1 million hectares covers 40 per cent of Alberta's total area and includes in excess of 2.2 billion m3 of growing stock. Annually, Alberta allows 29.7 million cubic meters (m3) to be harvested, of which 18.4 million m3 is coniferous, and 11.3 million m3 is deciduous.

* Includes wood products and pulp & paper

A Diversified and Resource-based Economy

Forestry

*Includes wood and pulp & paper industries Source: Statistics Canada

$ Billions

A Diversified and Resource-based Economy

Manufacturing

Value of Alberta Manufacturing Shipments 2010 Total: $60.1 Billion

4.9 0.4 0.8 1.4 2.0 4.0 4.4 6.2 10.5 10.7 14.7 Other Manufacturing* Electronic Products Furniture and Fixtures Plastics Construction Materials *Forest Products Fabricated Metals Machinery Chemical Products Food Refined Petroleum

Sources: Statistics Canada and OECD

Broadband Usage– Canada 2009 Percentage of House holds Accessing the Internet by Broadband 39 57 60 65 72 78 96 Italy France Japan Germany Canada Norway Korea Broadband Usage– International 2009 Percentage of House holds Accessing the Internet by Broadband 72 74 79 81 71 70 70 69 65 65 64

Quebec New Brunswick Newfoundland and Labrador Saskatchewan Prince Edward Island Nova Scotia Manitoba Canada Ontario Alberta British Columbia

A Diversified and Resource-based Economy

Advanced Technology Broadband Usage

A Diversified and Resource-based Economy

Financial Services

17 20 21 22 26 BC Canada Ontario Quebec Alberta

27 27 31 38 58

Quebec Ontario Canada BC Alberta

Financial Services Employment Growth 2002 - 2010 Percentage increase in Employment Financial Services GDP Growth 2002– 2010 Percentage increase in GDP

A Diversified and Resource-based Economy

Tourism

Alberta Tourism Receipts by Visitor Origin (2009) Total: $5.4 Billion

Source: Statistics Canada and Alberta Tourism, Parks & Recreation

Overnight Tourism by Tourism Destination Region (2009) Total : 40.4 Million Person Nights

Alberta North 6% Alberta Central 17% Edmonton & Area 22% Canadian Rockies 15% Calgary & Area 27% Alberta South 10% Unspecified Region 3%

Alberta 53% Other Canada 23% United States 11% Overseas 13%

Source: Statistics Canada – GDP at basic prices

Doing Business in Alberta

Competitiveness

Business Sector Labour Productivity 2010 Real GDP per Hour Worked, in 2002 constant dollars

$25.60 $28.60 $29.80 $33.90 $34.20 $36.50 $38.20 $38.20 $42.80 $45.00 $47.00

Prince Edward Island Nova Scotia New Brunswick Manitoba British Columbia Quebec Canada Ontario Saskatchewan Newfoundland and Labrador Alberta

Source: Canadian Business Patterns, Statistics Canada

Doing Business in Alberta

Entrepreneurship

Small Business – Cornerstone of the Economy 2000 – 2010 Percentage Change in Small Business Establishments (Less than 50 Employees)

• 19.1%
• 9.2%
• 8.2%
• 5.2%
• 4.0%
• 2.7%
• 0.4%

6.3% 9.3% 14.0% 15.5%

Prince Edward Island New Brunswick Saskatchewan Nova Scotia Newfoundland and Labrador Quebec Manitoba Canada British Columbia Ontario Alberta

• Bio Solutions
• Energy and Environment Solutions
• Health Solutions
• Technology Futures
• Alberta Research and Innovation Authority

Under the banner Alberta Innovates, the Alberta government created new

• rganizations that focus Alberta’s provincial research efforts in the areas of

agriculture, forestry, energy and environment, health, and technology

• commercialization. They Include:

Doing Business in Alberta

Research & Development

Source: Conference Board of Canada

Doing Business in Alberta

Government

Provincial Net Financial Assets/Debt as a per cent of GDP (2010-2011)

9.6%

• 6.4%
• 14.7%
• 23.1%
• 28.6%
• 30.4%
• 33.3%
• 33.5%
• 34.0%
• 38.2%
• 49.4%

Alberta Saskatchewan British Columbia Manitoba Newfoundland & Labrador New Brunswick Prince Edward Island Ontario Canada Nova Scotia Quebec

32.7% 16.5% 15.0% 6.5% 10.0% 10.0% United States February 2011 Alberta January 2011 Alberta 2012

Federal Provincial / State

39.2%* 26.5%

Doing Business in Alberta

Competitive Corporate Taxes

Comparison of Corporate Income Taxes

*6.5% represents the average effective top general state corporate income tax rate U.S. rates known as of February 2011 Source: Alberta Finance and Enterprise, and Tax Foundation

25.0%

Doing Business in Alberta

Provincial & State Corporate Taxes

Provincial Corporate Income Tax Rates (per cent) State Corporate Income Tax Rates (per cent) Province General Manufacturing & Processing Small Business State General Manufacturing & Processing Small Business Alberta 10.0 10.0 3.0 Oregon 7.6 7.6 6.6 British Columbia 10.0 10.0 2.5 California 8.84 8.84 8.84 New Brunswick 10.0 10.0 5.0 North Dakota 6.4 6.4 6.1 Quebec 11.9 11.9 8.0 Montana 6.75 6.75 6.75 Manitoba 12.0 12.0 0.0 Idaho 7.6 7.6 7.6 Saskatchewan 12.0 10.0 2.0 Colorado 4.63 4.63 4.63 Ontario 11.5 10.0 4.5 Utah 5.0 5.0 5.0 Newfoundland & Labrador 14.0 5.0 4.0 New Mexico 7.6 7.6 4.8 Prince Edward Island 16.0 16.0 1.0 Louisiana 8.0 8.0 7.1 Nova Scotia 16.0 16.0 4.5 Arizona 6.97 6.97 6.97 Federal 16.5 16.5 11.0 Federal 35.0 31.85 34.0 Note: Rates as of July 1, 2011 The small business rate is the effective tax rate for US$512,000 (comparable to the Canadian threshold of Cdn$500,000) The small business income threshold for Nova Scotia and Manitoba is Cdn$400,000. For all other provinces the small business income threshold is Cdn$500,000 Source: Canada Revenue Agency, PWC Tax News Network, Federation of Tax Administrators

Source: Canadian Council on Learning

Doing Business in Alberta

Educated Work Force

61.0 65.0 68.0 69.0 71.0 75.0 76.0 77.0 78.0 79.0 82.0 Newfoundland and Labrador New Brunswick Quebec Prince Edward Island Nova Scotia Canada Manitoba Saskatchewan British Columbia Ontario Alberta

Composite Learning Index 2010

Source: Statistics Canada

Working in Alberta

Strong Labour Market

Unemployment Rates (%) by Province: 2005 – 2009 (average) and 2010

14.3 11.3 9.3 9.3 8.7 8.0 7.9 7.6 6.5 5.4 5.2 14.5 11.0 8.2 8.7 7.0 6.7 7.8 5.4 4.2 4.6 4.6 Newfoundland and Labrador Prince Edward Island Nova Scotia New Brunswick Ontario Canada Quebec British Columbia Alberta Manitoba Saskatchewan

2005 - 2009 2010

Working in Alberta

Low Personal Taxes

Top Marginal Personal Income Tax Rates 2011

* Quebec residents receive an abatement of 16.5% of basic federal tax because of the province’s decision to opt out of federal cash transfers in support of provincial programs Source: Alberta Budget 2011

29.0% 29.0% 29.0% 29.0% 29.0% 29.0% 29.0% 29.0% 24.2% 29.0% 10.0% 11.2% 12.7% 14.7% 15.0% 15.5% 16.7% 17.4% 24.0% 21.0% Alberta Ontario New Brunswick British Columbia Saskatchewan Newfoundland and Labrador Prince Edward Island Manitoba Quebec* Nova Scotia

Provincial Personal Income Tax 39.0% 40.2% 41.7% 43.7% 44.0% 44.5% 45.7% 46.4% 48.2% 50.0%

*As of March 2011 Note: Unlike in previous Highlights of the Alberta Economy presentation reports, tobacco taxes were not included in the personal taxes calculations since most Albertans do not

• smoke. Alberta’s rankings will not change even if tobacco

taxes were included in the comparisons. Source: Alberta Finance and Enterprise

Working in Alberta

Low Personal Taxes

Comparison of Provincial and Federal Taxes by Province Two-Income Family of Four - $75,000* Comparison of Provincial and Federal Taxes by Province Two-Income Family of Four - $125,000*

$17,426 $14,644 $14,309 $13,811 $13,246 $12,183 $11,157 $9,824 $9,277 $7,229

$39,173 $36,134 $35,808 $35,318 $34,786 $33,725 $32,761 $31,393 $30,889 $28,801 Quebec Nova Scotia Prince Edward Island Manitoba Newfoundland & Labrador New Brunswick Ontario Sasaktchewan British Columbia Alberta Total Federal Tax Total Provincial Tax $7,628 $7,236 $7,386 $7,165 $6,983 $6,428 $5,555 $5,309 $4,244 $2,983 $17,392 $17,180 $17,157 $16,935 $16,773 $16,213 $15,386 $15,120 $14,065 $12,786 Prince Edward Island Quebec Nova Scotia Manitoba Newfoundland & Labrador New Brunswick Ontario British Columbia Sasaktchewan Alberta Total Provincial Tax Total Tax

Source: Statistics Canada

Working in Alberta

Family Income

$53,900 $55,000 $55,100 $55,800 $57,300 $62,400 $63,800 $66,200 $67,200 $69,900 $77,800 Newfoundland and Labrador New Brunswick Nova Scotia Prince Edward Island Quebec Manitoba Canada Ontario British Columbia Saskatchewan Alberta

2009 Median After-Tax Family Income Families with Two Persons or More

Source: Centre for the Study of Living Standards

Working in Alberta

Standard of Living

0.498 0.501 0.543 0.543 0.549 0.561 0.561 0.567 0.624 0.638 0.731 Nova Scotia New Brunswick British Columbia Ontario Quebec Canada Manitoba Prince Edward Island Saskatchewan Newfoundland Alberta

Index of Economic Well-Being Provincial Comparison, 2010

0.455 0.490 0.534 0.564 0.570 0.581 0.610 0.629 0.639 0.641 0.647 0.655 0.678 0.725 0.796 Spain United States Italy Australia United Kingdom Canada France Finland Sweden Netherlands Belgium Germany Denmark Alberta Norway

Index of Economic Well-Being International Comparison, 2009

Living in Alberta

People

Alberta Population by Ethnic Origin, 2006

Note: These numbers add up to more than the population due to multiple responses. Source: Statistics Canada, 2006 Census of Population

* Northern Alberta Institute of Technology and Southern Alberta Institute of Technology Note: Full Time and Part Time Students, 2009-2010

Comprehensive Academic & Research Institutions

University

• f

Alberta; University

• f

Calgary; University

• f

Lethbridge; Athabasca University

Baccalaureate & Applied Studies Institutions

Grant MacEwan University; Mount Royal University Alberta College of Art and Design; The Banff Centre

Living in Alberta

Education

Polytechnic Institutions

NAIT*; SAIT* Polytechnic

Specialized Arts & Culture Institutions Independent Academic Institutions

Ambrose University College; Canadian University College; Concordia University College of Alberta; The King’s University College; St. Mary’s University College

Comprehensive Community Institutions

Bow Valley College ; Grand Prairie Regional College; Keyano College ; Lethbridge College; Medicine Hat College; NorQuest College; Northern Lakes College; Olds College; Portage College; Red Deer College; Lakeland College

Living in Alberta

Quality Education

Sources: Measuring Up: Canadian Results of the OECD PISA Study, Statistics Canada

Top Scores in Mathematics, Science and Reading 2009 Program for International Student Assessment (PISA) Examinations Average = 500

Mathematics Science Reading Rank Jurisdiction Score Rank Jurisdiction Score Rank Jurisdiction Score

1 Shanghai-China 600 1 Shanghai-China 575 1 Shanghai-China 556 2 Singapore 562 2 Finland 554 2 Korea 539 3 Hong Kong-China 555 3 Hong Kong-China 549 3 Finland 536 4 Korea 546 4 Alberta 545 4 Hong Kong-China 533 5 Chinese Taipei 543 5 Singapore 542 5 Alberta 533 6 Quebec 543 6 Japan 539 6 Ontario 531 7 Finland 541 7 Korea 538 7 Singapore 526 8 Liechtenstein 536 8 British Columbia 535 8 British Columbia 525 9 Switzerland 534 9 New Zealand 532 9 Canada 524 10 Japan 529 10 Ontario 531 10 Quebec 522 11 Alberta 529 11 Canada 529 11 New Zealand 521 12 Canada 527 12 Estonia 528 12 Japan 520 42 United States 487 31 United States 502 24 United States 500

• 1. PISA test 15 year olds' Mathematics, Science and Reading skills
• 2. The rank is out of 75 jurisdictions

Living in Alberta

Health Care

Selected Health Indicators

*Note: Risk Adjusted Percentages **Canada data does not include Quebec due to differences in data collection Sources: National Health Expenditure Trends, 1975-2010, Canadian Institute of Health Information (CIHI) ; Health Indicators 2010 Report,(CIHI), Statistics Canada

17.7 8.9 3.7 16.4 7.3 4.3 30 Day In-Hospital Mortality Rate from Stroke* (2006-2009) 30 Day In-Hospital Mortality Rate from Heart Attack* (2006-2009) Per Capita Government Health Expenditures - 2010 ($ 000s)

Alberta Canada**

Living in Alberta

Arts and Culture

Note: Excludes statistics for Prince Edward Island, Newfoundland and New Brunswick which were suppressed to meet the confidentiality requirements of the Statistics Act.

$56 $72 $80 $88 $98 $101 $105 $113 $123 $135 $141 Newfoundland and Labrador New Brunswick Nova Scotia Quebec British Columbia Prince Edward Island Canada Ontario Manitoba Alberta Saskatchewan Source: Statistics Canada Average Household Spending on Live Performing Arts: 2009 (Annual Dollars) Private Sector Support of Performing Arts (2008) Per Capita $1.80 $2.34 $3.17 $4.46 $4.64 $5.77 $6.35 Nova Scotia Saskatchewan Quebec Manitoba British Columbia Ontario Alberta

Source: Statistics Canada

Living in Alberta Donations and Volunteerism

$130 $250 $290 $300 $310 $330 $340 $340 $360 $370 $370 Quebec Canada New Brunswick Nova Scotia Ontario Saskatchewan Newfoundland and Labrador Manitoba British Columbia Prince Edward Island Alberta

Charitable Donor Statistics

Median Annual Donation Per taxfiler, 2009

Alberta On-Line Resources

Alberta Government www.alberta.ca Alberta Finance and Enterprise www.finance.alberta.ca www.albertacanada.com Doing Business in Alberta: Investing and Locating www.albertacanada.com/intl-business/establishing-a-company.html Exporting Your Products www.albertacanada.com/ab-business/exporting-your-products.html Industry Sectors www.albertacanada.com/ab-business/alberta-industries.html Regional Development www.albertacanada.com/about-alberta/regional-economic-development.html Comm unity/Market Information www.albertacanada.com/about-alberta/the-economy.html Visiting Alberta: Travel Alberta www.travelalberta.com List of Festivals in Alberta www.culture.alberta.ca/arts/artsfestivals Vacation Guides www.travelalberta.com/en/Vacation_Guides Provincial Parks www.albertaparks.ca Tourism www.tpr.alberta.ca Working and Living in Alberta: Immigrating www.albertacanada.com/immigration Things to Do www.tpr.alberta.ca and www.culture.alberta.ca/arts/artsfestivals Health Care www.health.alberta.ca Education www.education.alberta.ca Alberta Learning Information Service www.alis.alberta.ca Advanced Education and Technology www.advancededucation.gov.ab.ca Alberta Innovates

• www. albertainnovates.ca