Highlights of the Alberta Economy

Alberta Finance and Enterprise Enterprise Division Table of Contents • Economic Highlights –Growth – Economic prosperity – Attractive Investment Climate – Exports • A Diversified and Prosperous Economy – Energy – Environment – Agriculture – Forestry – Manufacturing – Advanced Technology Industries – 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 – Volunteerism – Living in 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

23.9 Population 11.2 Alberta Canada 27.4 Employment 16.0

30.5 GDP* 22.9

40.6 Goods Exports -3.2

88.0 Investment 73.4

*Growth rate for 1999 -2009 Source: Statistics Canada and Alberta Finance and Enterprise Economic Highlights Economic Prosperity

Economic Diversity: 1985 Economic Diversity: 2009 Percentage Distribution of GDP Percentage Distribution of GDP Total GDP: $66.8 Billion Total GDP: $247.2 Billion Construction 6.7% Agriculture Construction 10.6% 3.0% Energy Health 36.1% Agriculture Energy 3.6% 1.4% 23.4% Education Health Manufacturing 3.6% 4.9% 6.5% Transp. & Util Public Admin. Education 7.2% 4.8% 3.7% Manufacturing Public Admin. Ret. & Whls 6.0% 4.0% 8.1% Bus. & Comm. Transp. & Util Services Tourism & Cons. 7.7% Ret. & Whls 9.0% 9.6% Serv. Finance & Real Bus. & Comm. 3.8% Estate Services Tourism & Cons. Finance & Real 11.0% 5.5% Serv. Estate 5.2% 14.6% Sources: Statistics Canada and Alberta Finance and Enterprise Economic Highlights Attractive Investment Climate

Per Capita Investment (2010)

Alberta $18,930 Saskatchewan $15,161 Newfoundland & Labrador $12,847 Canada $9,911 British Columbia $9,815 Manitoba $8,660 Ontario $8,267 Quebec $8,112 New Brunswick $7,757 Nova Scotia $7,243 Prince Edward Island $6,732

Source: Statistics Canada Economic Highlights Exports Alberta’s Major Exports 2010* Total Exports of Goods ($77.8 Billion)

Crude Petroleum 38.8

Gas and Gas Liquids 13.7

Petrochemicals 6.2

Metals & Machinery 5.1

Crops & Livestock 3.3

Forestry Products 3.3

Processed Food & Beverages 2.1

Refined Petroleum Products 1.4 $ Billions

Sulphur & Coal 1.3

Electronic & Electrical Products 0.9

Others 2.4

* Export of services is not included in this estimate Sources: Statistics Canada and Alberta Finance and Enterprise A Diversified and Resource-Rich Economy Energy

Alberta’s Energy Revenues 2009 Alberta’s Energy Exports 2010 Total: $64.1 Billion Total: $53.9 Billion

Natural Natural Gas & Gas Coal and Gas & Gas Coal and Liquids Sulpur Liquids Sulphur 37.2% 1.7% 25.4% 2.4%

Crude Oil Crude Oil 61.1% 72.1%

Sources: Statistics Canada, Energy Resources Conservation Board, Alberta Finance and Enterprise Diversified and Resource-Rich 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. A Diversified and Resource Rich Economy Agriculture

Alberta’s Major Agricultural Products 2009 Farm Cash Receipts ($ Billions) Total: $9.4 Billion

Beef Cattle 2.88

Others* 2.05

Wheat (incl. Durum) 1.70

Canola & Flax 1.68

Dairy 0.46

Hogs 0.32

Oats, Rye & Barley 0.30

*Includes specialty cash crops, honey, poultry, eggs, program payments, etc. Source: Statistics Canada A Diversified and Resource Rich Economy Forestry

Shipments of forest products reached $4.0 billion in 2010, and exports were $3.3 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 Rich Economy Manufacturing

Value of Alberta Manufacturing Shipments 2010 Total: $59.7 Billion

Refined Petroleum 14.7

Food 10.8

Chemical Products 10.2

Machinery 5.9

Fabricated Metals 4.5

*Forest Products 4.0

Construction Materials 2.0

Plastics 1.3

Furniture and Fixtures 0.8 $ Billions

**Electronic Products 0.4

Other Manufacturing* 5.1

*Includes wood and pulp & paper industries **Includes telecom equipment Source: Statistics Canada A Diversified and Resource Rich Economy Advanced Technology Industries

Korea 96 Norway 78 Broadband Usage– International 2009 Canada 72 Percentage of House holds Germany 65 Accessing the Internet by Broadband Japan 60

France 57 British Columbia 81 Italy 39 Alberta 79 Ontario 74 Canada 72 Manitoba 71 Broadband Usage– Canada 2009 Nova Scotia 70 Percentage of House holds Prince Edw ard Island 70 Accessing the Internet by Broadband Saskatchew an 69 Newfoundland and Labrador 65 Ne w Br uns w ick 65 Sources: Statistics Canada and OECD Quebec 64 A Diversified and Resource Rich Economy Financial Services

Alberta 30

Ontario 22 Financial Services Employment Growth 2002 - 2009 Canada 19 Percentage increase in Employment

Quebec 17

BC 12 Alberta 55

BC 35

Canada 29 Financial Services GDP Growth 2002 – 2009 Percentage increase in GDP Ontario 27

Quebec 24 A Diversified and Resource-Rich Economy Tourism Alberta Tourism Receipts by Visitor Overnight Tourism by Tourism Origin (2009)* Destination Region (2008) Total: $5.7 Billion Total : 41.6 Million Person Nights Alberta 55% Edmonton & Alberta Area Central 21% 16%

Alberta North 6% Canadian Rockies Unspecified 17% Region Overseas 3% 13% Alberta South 10% Other Canada 22% United States Calgary & 10% Area 27%

*Expenditure for 2009 is based on estimates and not actual expenditure Source: Statistics Canada and Alberta Tourism, Parks & Recreation Doing Business in Alberta Competitiveness

Labour Productivity 2009 Real GDP per Hour Worked, in 2002 constant dollars

Alberta $47.90 Newfoundland and $44.80 Labrador Ontario $41.40

Canada $41.10

Saskatchewan $40.60

Quebec $39.70

British Columbia $39.10

Manitoba $36.10

Nova Scotia $33.40

New Brunswick $32.60

Prince Edward Island $30.90

Source: Statistics Canada, Alberta Finance and Enterprise Doing Business in Alberta Entrepreneurship

Small Business – Cornerstone of the Economy 1999 – 2009 Percentage Change in Small Business Establishments (Less than 50 Employees)

20.6% Alberta 15.4% Ontario 10.0% British Columbia 7.5% Canada -0.8% Manitoba -2.3% Quebec -3.5% Newfoundland and Labrador -4.9% Nova Scotia -8.6% Saskatchewan -8.6% New Brunswick -16.9% Prince Edward Island

Source: Canadian Business Patterns, Statistics Canada Doing Business in Alberta Research & Development Under the banner Alberta Innovates, the Alberta government created new organizations to build on its strengths in health, energy and environment, technology, and bio sectors. The include:

•Bio Solutions

•Energy and Environment Solutions

•Health Solutions

•Technology Futures

•Alberta Research and Innovation Authority Doing Business in Alberta Government

Provincial Net Financial Assets/Debt as a per cent of GDP, March 31, 2009

Alberta 10.3%

Saskatchewan -9.7%

British Columbia -13.0%

Manitoba -21.5%

Ontario -24.9%

New Brunswick -26.0%

Canada -29.9%

Prince Edward Island -30.2%

Quebec -31.6%

Newfoundland & Labrador -31.9%

-36.1% Note: Excludes Pension Liabilities. Nova Scotia Source: Alberta Finance and Enterprise Doing Business in Alberta Competitive Corporate Taxes

Comparison of Corporate Income Taxes

United States 32.7% 6.5% February 2011 39.2%*

Alberta January 16.5% 10.0% 26.5% 2011

Alberta 2012 15.0% 10.0% 25.0%

Federal Provincial / State *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 Doing Business in Alberta Provincial & State Corporate Taxes

Provincial Corporate Income Tax Rates (per cent) 1 State Corporate Income Tax Rates (per cent) 4 Manufacturing Small Manufacturing & Small Province General & Processing Business State General Processing Business 5 Alberta 10.0 10.0 3.0 Washington 6 n/a n/a n/a British Columbia 10.5 10.5 2.5 Oregon 7.9 7.9 7.2 New Brunswick 11.0 11.0 5.0 California 8.84 8.84 8.84 Quebec 11.9 11.9 8.0 North Dakota 6.4 6.4 6.1 Manitoba2 12.0 12.0 1.0 Montana 6.75 6.75 6.75 Saskatchewan 12.0 10.0 4.5 Idaho 7.6 7.6 7.6 Ontario3 12.0 10.0 4.5 Colorado 4.63 4.63 4.63 Newfoundland & Labrador 14.0 5.0 5.0 Utah 5.0 5.0 5.0 Prince Edward Island 16.0 16.0 1.0 New Mexico 7.6 7.6 4.8 Nova Scotia 16.0 16.0 5.0 Louisiana 8.0 8.0 7.1

Federal 18.0 18.0 11.0 Federal 35.0 31.85 34.0

1 Rates as of May 31, 2010 unless otherwise noted 2 Small business rate to be reduced to 0% by December 1, 2010 3 Effective on July 1, 2010 4 Rates as of February 1, 2010 5 The small business rate is the effective tax rate for US$438,000 (comparable to the Canadian threshold of Cdn$500,000) 6 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. Source: PWC Tax News Network, Federation of Tax Administrators Doing Business in Alberta Educated Work Force Composite Learning Index 2010

Alberta 82.0

Ontario 79.0

British Columbia 78.0

Saskatchewan 77.0

Manitoba 76.0

Canada 75.0

Nova Scotia 71.0

Prince Edward Island 69.0

Quebec 68.0

New Brunswick 65.0

Newfoundland and Labrador 61.0

Source: Canadian Council on Learning Working in Alberta Strong Labour Market Unemployment Rates (%) by Province: 2005 – 2009 (average) and 2010

4.6 Saskatchewan 5.2 4.6 Manitoba 5.4 4.2 Alberta 6.5 5.4 British Columbia 7.6 7.8 2005 - 2009 Quebec 7.9 2010 6.7 Canada 8.0 7.0 Ontario 8.7 8.7 New Brunswick 9.3 8.2 Nova Scotia 9.3 11.0 Prince Edward Island 11.3 14.5 Newfoundland and Labrador 14.3

Source: Statistics Canada Working in Alberta Low Personal Taxes Top Marginal Personal Income Tax Rates 2011

Alberta 29.0% 10.0% 39.0%

Ontario 29.0% 11.2% 40.2%

New Brunswick 29.0% 12.7% 41.7%

British Columbia 29.0% 14.7% 43.7%

Saskatchewan 29.0% 15.0% 44.0%

Newfoundland and 29.0% 15.5% 44.5% Labrador

Prince Edward Island 29.0% 16.7% 45.7%

Manitoba 29.0% 17.4% 46.4%

Quebec* 24.2% 24.0% 48.2%

Nova Scotia 29.0% 21.0% 50.0%

Provincial Personal Income Tax * Quebec residents receive an abatement of 16.5% of basic federal tax because of the provinces decision to opt out of federal cash transfers in support of provincial programs Source: Alberta Budget 2011 Alberta $2,983 $12,786 Working in Alberta Sasaktchewan $4,244 $14,065 British Columbia $5,309 $15,120 Low Personal Taxes Ontario $5,555 $15,386

New Brunswick $6,428 $16,213 Newfoundland & Labrador $6,983 $16,773 Comparison of Provincial and Manitoba $7,165 $16,935 Federal Taxes by Province

Nova Scotia $7,386 $17,157 Two-Income Family of Four - $75,000*

Quebec $7,236 $17,180

Prince Edward Island $7,628 $17,392

Total Federal Tax Total Provincial Tax

Alberta $7,229 $28,801

British Columbia $9,277 $30,889

Sasaktchewan $9,824 $31,393 Comparison of Provincial and Ontario $11,157 $32,761 Federal Taxes by Province Two-Income Family of Four - New Brunswick $12,183 $33,725 $125,000* Newfoundland & Labrador $13,246 $34,786

Manitoba $13,811 $35,318 *As of March 2011 Prince Edward Island $14,309 $35,808 Note: Unlike in previous Highlights of the Alberta Economy presentation reports, tobacco taxes were not included in the Nova Scotia $14,644 $36,134 personal taxes calculations since most Albertans do not smoke. Alberta’s rankings will not change even if tobacco taxes were Quebec $17,426 $39,173 included in the comparisons. Source: Alberta Finance and Enterprise Total Provincial Tax Total Tax Working in Alberta Family Income

2008 Median After-Tax Family Income Families with Two Persons or More

Alberta $77,200

British Columbia $68,500

Ontario $67,000

Saskatchewan $64,800

Canada $63,900

Manitoba $61,200

Quebec $55,900

Prince Edward Island $55,300

Newfoundland and Labrador $53,200

New Brunswick $53,100

Nova Scotia $53,000

Source: Statistics Canada Working in Alberta Economic Well-Being

Provincial Comparison International Comparison 2009 2008

Alberta 0.802 Norway 0.784 Alberta 0.721 Newfoundland 0.641 Denmark 0.678 Canada 0.623 Netherlands 0.671 Saskatchewan 0.620 Belgium 0.656 Sweden 0.643 British Columbia 0.604 France 0.639 Ontario 0.590 Germany 0.637 Manitoba 0.583 Finland 0.620 Australia 0.616 Quebec 0.583 Canada 0.590 Prince Edward Island 0.576 Italy 0.537 Nova Scotia 0.576 United Kingdom 0.508 United States 0.503 New Brunswick 0.528 Spain 0.460

Source: Centre for the Study of Living Standards 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 Living in Alberta Quality Education

Comprehensive Academic Athabasca University; University of Alberta; University of & Research Institutions Calgary; University of Lethbridge

Baccalaureate & Applied Studies Institutions Grant MacEwan University; Mount Royal University

Polytechnic Institutions NAIT; SAIT Polytechnic

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

Independent Academic Ambrose University College; Canadian University College; Institutions Concordia University College of Alberta; The King’s University College; St. Mary’s University College Specialized Arts & Culture Institutions Alberta College of Art and Design; The Banff Centre

* Northern Alberta Institute of Technology and Southern Alberta Institute of Technology ** Full Time and Part Time Students, 2008-2009 Living in Alberta Quality Education

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 Sources: Measuring Up: Canadian Results of the OECD PISA Study, Statistics Canada Living in Alberta Health Care

Selected Health Indicators

Per Capita Government 4.3 Health Expenditures - Alberta Canada** 2010 ($ 000s) 3.7

30 Day In-Hospital 7.3 Mortality Rate from Heart Attack* (2006-2009) 8.9

30 Day In-Hospital 16.4 Mortality Rate from Stroke* (2006-2009) 17.7

*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 Living in Alberta Arts and Culture

Private Sector Support of Performing Arts Average Household Spending on Live Performing (2008) Per Capita Arts: 2008 (Annual Dollars)

Alberta $6.35 Saskatchewan $124 Ontario $123 Ontario $5.77 British Columbia $115 British Columbia $4.64 Alberta $115 Manitoba $114 Manitoba $4.46 Canada $108 Quebec $87 Quebec $3.17 Prince Edward Island $84 Saskatchewan $2.34 Nova Scotia $73 New Brunswick $70 Nova Scotia $1.80 Newfoundland and Labrador $70

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

Source: Statistics Canada Living in Alberta Volunteerism

Donation and Volunteer Statistics 2007

596 Average Annual Donations ($) 437

172 Average Volunteer Canada Alberta Hours 166

52 Volunteer Rate (%) 46

Source: Statistics Canada, Canada Survey of Giving, Volunteering and Participating, 2007 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 http://www.albertacanada.com/intl-business/establishing-a-company.html Exporting Your Products http://www.albertacanada.com/ab-business/exporting-your-products.html Industry Sectors http://www.albertacanada.com/ab-business/alberta-industries.html Regional Development http://www.albertacanada.com/about-alberta/regional-economic-development.html Community/Market Information http://www.albertacanada.com/about-alberta/the-economy.html

Visiting Alberta: Travel Alberta www1.travelalberta.com List of Festivals in Alberta http://www.culture.alberta.ca/arts/artsfestivals/ Vacation Guides http://www.travelalberta.com/en/Vacation_Guides/ Provincial Parks gateway.cd.gov.ab.ca Tourism www.tpr.alberta.ca

Working and Living in Alberta: Immigrating www.albertacanada.com/immigration Things to Do www.tprc.gov.ab.ca and http://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 http://www.advancededucation.gov.ab.ca/