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Highlights of the Economy 2014 Alberta Innovation and Advanced Education Table of Contents . Economic Highlights . Doing Business in Alberta – Growth – Competitiveness – Economic prosperity – Entrepreneurship – Attractive Investment Climate – Research and Development – Exports – Government – Competitive Corporate Taxes . A Diversified and Resource- – Provincial and State Corporate based Economy Taxes – Energy – Educated Work Force – – Manufacturing – Advanced Technology Broadband Usage – Financial Services – Table of Contents

. Working in Alberta . Online Resources – Strong Labour Market – Low Personal Taxes – Family Income – Standard of Living

. Living in Alberta – People – Education – Quality Education – Health Care – Arts and Culture – Donations and Volunteerism

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

Growth In Selected Indicators: 2003 - 2013 Per Cent Change

26.5 Population 11.1 Alberta 27.6 Employment 13.2

37.0 GDP 19.9

81.0 Goods Exports 25.0

148.4 Investment 77.3

Source: and Alberta Innovation and Advanced Education Economic Highlights Economic Prosperity

Economic Diversity: 1985 Economic Diversity: 2013 Percentage Distribution of GDP Percentage Distribution of GDP Total GDP: $67.6 Billion Total GDP: $331.9 Billion

Construction 6.7% Construction 10.7% Agriculture 3.0% Health 3.6% Agriculture 1.9% Energy 24.6% Education 3.6% Health 5.0% Public Administration Energy 36.1% 4.8% Education 3.6% Public Administration 4.4% Retail & Wholesale 8.1% Manufacturing 6.9% Retail & Wholesale 8.7% Tourism & Consumer Services 3.8% Transportation & Utilities 6.0% Manufacturing 6.0% Finance & Real Estate Tourism & Consumer Services 4.4% 11.0% Transportation & Business & Commercial Business & Commercial Finance & Real Estate Utilities 7.7% Services 10.6% Services 5.5% 13.5%

Sources: Statistics Canada and Alberta Innovation and Advanced Education Economic Highlights Attractive Investment Climate

Per Capita Investment (2013)

Alberta $27,617 Newfoundland & Labrador $23,408 $19,259 Canada $11,342 $10,363 $9,943 $8,241 $8,209 $7,346 Prince Edward Island $6,677 $5,975

Sources: Statistics Canada and Alberta Innovation and Advanced Education Economic Highlights

Exports Alberta’s Major Exports 2013 Total Exports of Goods ($103.7 Billion*) Crude 64.4

Gas and Gas Liquids 10.0

Petrochemicals 7.6

Crops & Livestock 5.2

Metals & Machinery 4.7

Processed Food & Beverages 3.5

Forestry Products 2.3

Refined Petroleum Products 2.2

Electronic & Electrical Products 0.9 $ Billions

Sulphur & Coal 0.8

Others 2.1

* Exports of services are not included in this estimate Sources: Statistics Canada and Alberta Innovation and Advanced Education A Diversified and Resource-based Economy Energy

Alberta’s Energy Revenues 2013 Alberta’s Energy Exports 2013 Total: $96.3 Billion Total: $75.2 Billion

Coal and Convention Natural Gas & Coal and Sulphur & Gas Sulpur al Crude Oil Gas Liquids 1.1% Liquids 1.2% 18.3% 13.3% 20.9%

Oil Sands Crude Oil 59.6% 86.1%

Sources: Statistics Canada, Alberta Energy Regulator, Alberta Innovation and Advanced Education A Diversified and Resource-based Economy Agriculture Alberta’s Major Agricultural Products 2013 Farm Cash Receipts ($ Billions) Total: $11.8 Billion

Beef Cattle 3.28

Canola & Flax 2.63

Wheat (incl. 2.28 Durum)

Dairy 0.52

Hogs 0.42

Oats, Rye & Barley 0.40

Other* 2.22

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

Value of Alberta Manufacturing Shipments in 2013 Total: $73.8 Billion

Refined Petroleum 20.4

Food & Beverage 12.5

Chemical Products 12.3

Machinery 7.6

Fabricated Metals 5.9

Wood Products 3.6

Construction Materials 2.3

Plastics & Rubber 1.6 $ Billions

Electronic & Electrical Products 1.3

Other Manufacturing 6.3

Source: Statistics Canada A Diversified and Resource-based Economy Advanced Technology Broadband Usage

Korea 97 Broadband Usage – International 2011 Norway 80 Percentage of Households Germany 77 Accessing the Internet by Broadband Canada 75 France 70 Japan 65 Alberta 85 Italy 52 British Columbia 83 Ontario 76 Broadband Usage – Canada 2011 Canada 75 Percentage of Households Nova Scotia 73 Accessing the Internet by Broadband Saskatchewan 72 Prince Edward Island 71 Newfoundland and Labrador 71 Manitoba 70

Sources: Statistics Canada and OECD New Brunswick 69 Quebec 65 A Diversified and Resource-based Economy Financial Services

Alberta 36.9

Ontario 26.2 Financial Services Employment Growth 2003 - 2013 Canada 23.8 Percentage increase in Employment

British 21.4 Columbia

Alberta 64.0 Quebec 18.1

British Columbia 37.0

Canada 31.5 Financial Services GDP Growth 2003 - 2013 Percentage increase in GDP Ontario 27.2

Quebec 25.7 Source: Statistics Canada A Diversified and Resource-based Economy Tourism

Alberta Tourism Expenditures by Visitor Origin (2011) Total: $7.8 Billion

Overseas 9% 7%

Other Canada 19%

Alberta 65%

Source: Statistics Canada and Alberta Tourism, Parks and Recreation Doing Business in Alberta Competitiveness

Business Sector Labour Productivity 2013 Real GDP per Hour Worked, in 2007 constant dollars

Newfoundland and Labrador $73.90

Alberta $69.60

Saskatchewan $57.60

Canada $48.30

Manitoba $44.80

Ontario $44.60

British Columbia $44.20

Quebec $43.80

Nova Scotia $35.80

New Brunswick $35.20

Prince Edward Island $27.90

Source: Statistics Canada

Doing Business in Alberta Entrepreneurship Small Business – Cornerstone of the Economy 2003 – 2013 Percentage Change in Small Business Establishments (Less than 50 Employees)

19.8% Ontario

18.5% Alberta

14.0% British Columbia

12.1% Canada

6.6% Manitoba

4.1% Quebec

2.6% Newfoundland and Labrador

1.4% Saskatchewan

-1.5% Nova Scotia

-3.9% New Brunswick

-14.7% 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 that focus Alberta’s provincial research efforts in the areas of agriculture, forestry, energy and environment, health, and technology commercialization. They 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 (2013 - 2014)

2.2% Alberta

-5.2% Saskatchewan

-17.4% British Columbia

-24.8% Newfoundland and Labrador

-28.8% Manitoba

-35.6% Nova Scotia

-35.8% Prince Edward Island

-36.8% New Brunswick

-36.8% Canada

-39.4% Ontario

-49.5% Québec

Source: Conference Board of Canada Doing Business in Alberta Competitive Corporate Taxes

Comparison of Corporate Income Taxes

United States January 2014 32.8% 6.2% 39.0%*

Alberta January 2014 15.0% 10.0% 25.0%

Federal Provincial / State

*6.2% represents the average top general state corporate income tax rate Source: Alberta Innovation and Advanced Education, Tax Foundation and Federation of Tax Administrators Doing Business in Alberta Provincial & State Corporate Taxes

Provincial Corporate Income Tax Rates (per cent) State Corporate Income Tax Rates (per cent) Manufacturing Small Manufacturing Small General & Processing Business State General & Processing Business Alberta 10 10 3 Oregon 7.6 7.6 6.6 British Columbia 11 11 2.5 California 8.84 8.84 8.84 New Brunswick 12 12 4.5 North Dakota 4.53 4.53 4.53 Quebec 11.9 11.9 8 Montana 6.75 6.75 6.75 Manitoba 12 12 0 7.4 7.4 7.4 Saskatchewan 12 10 2 Colorado 4.63 4.63 4.63 Ontario 11.5 10 4.5 Utah 5 5 5 Newfoundland & Labrador 14 5 4 New Mexico 7.3 7.3 4.8 Prince Edward Island 16 16 4.5 8 8 4 Nova Scotia 16 16 3 Arizona 6.5 6.5 6.5

Federal 15 15 10 Federal 35 32.75 34 Note: Rates as of January, 2014 The small business rate is the effective tax rate for US$466,066 (comparable to the Canadian threshold of Cdn$500,000) The small business income threshold for Nova Scotia and Manitoba is Cdn$350,000 and $400,000, respectively. For all other the small business income threshold is Cdn$500,000 Source: , 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: 2008 – 2012 (average) and 2013

4.8 Saskatchewan 4.0 5.4 Alberta 4.6 5.1 Manitoba 5.4 6.8 British Columbia 6.6 7.4 2008-2012 Canada 7.1 2013 8.0 Ontario 7.5 7.9 Quebec 7.6 8.8 Nova Scotia 9.0 9.3 New Brunswick 10.4 13.7 Newfoundland & Labrador 11.4 11.3 Prince Edward Island 11.5

Source: Statistics Canada Working in Alberta Low Personal Taxes Top Marginal Personal Income Tax Rates 2014

Alberta 29.0% 10.0% 39.0%

Newfoundland & Labrador 29.0% 13.3% 42.3%

Saskatchewan 29.0% 15.0% 44.0%

British Columbia 29.0% 16.8% 45.8%

Manitoba 29.0% 17.4% 46.4%

New Brunswick 29.0% 17.8% 46.8%

Prince Edward Island* 29.0% 18.4% 47.4%

Ontario* 29.0% 20.5% 49.5%

Quebec** 24.2% 25.8% 50.0%

Nova Scotia 29.0% 21.0% 50.0%

* Prince Edward Island and Ontario’s top provincial rates include a surtax ** 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: KPMG $ $ Working in Alberta Alberta $5,258 $21,046 Low Personal Taxes Saskatchewan $7,474 $23,302 British Columbia $7,936 $23,763

Ontario $9,272 $25,106

Newfoundland & Labrador $10,359 $26,157 Comparison of Provincial and Federal Taxes by Province New Brunswick $10,635 $26,414 Two-Income Family of Four – Manitoba $11,268 $27,040 $100,000* Prince Edward Island $11,658 $27,422

Nova Scotia $12,159 $27,922

Québec $13,293 $29,469 Total Federal Tax Total Provincial Tax

Alberta $13,680 $51,227

British Columbia $17,278 $54,842

Saskatchewan $19,797 $57,293

Ontario $23,019 $60,530

Newfoundland & Labrador $23,957 $61,422 Comparison of Provincial and Federal Taxes by Province New Brunswick $25,650 $63,055 Two-Income Family of Four – Manitoba $26,893 $64,288 $200,000* Prince Edward Island $27,236 $64,619

Nova Scotia $28,591 $65,960

Québec $33,624 $71,553

Total Federal Tax Total Provincial Tax Source: Alberta Treasury Board and Finance (* as of June 2014) Note: Comparisons are for a family with a 60/40 income split and two children aged 6 and 12. It includes the impact of income taxes, sales taxes, fuel taxes, health premiums and payroll taxes Working in Alberta Family Income

2011 Median After-Tax Family Income Families with Two Persons or More

Alberta $83,800

Saskatchewan $75,000

Ontario $70,400

British Columbia $69,700

Canada $68,000

Manitoba $65,300

Nova Scotia $61,100

Newfoundland and Labrador $60,300

Quebec $60,000

New Brunswick $60,000

Prince Edward Island $59,500

Source: Statistics Canada Working in Alberta Standard of Living

Index of Economic Well-Being Index of Economic Well-Being Provincial Comparison, 2012 International Comparison, 2012

Alberta 0.758 Norway 0.791 Alberta 0.641 Saskatchewan 0.644 Belgium 0.634 Newfoundland 0.620 Germany 0.620 Canada 0.569 Netherlands 0.619 Finland 0.600 Manitoba 0.550 Sweden 0.585 Ontario 0.547 France 0.581 Denmark 0.573 British Columbia 0.533 0.569 Quebec 0.527 Canada 0.516 New Brunswick 0.526 Australia 0.507 United States 0.496 Nova Scotia 0.525 Italy 0.473 Prince Edward Island 0.497 Spain 0.361

Source: Centre for the Study of Living Standards Living in Alberta People Alberta Population by Ethnic Origin, 2011

% of Total % of Total Ethnic Origin Number Ethnic Origin Number Population Population Totals 3,567,975 100.0% Total 3,567,975 100.0% English 886,760 24.9% Russian 99,780 2.8% Canadian 776,695 21.8% Swedish 96,890 2.7% German 683,830 19.2% Métis 94,615 2.7% Scottish 670,955 18.8% Italian 88,705 2.5% Irish 565,120 15.8% British Isles 79,300 2.2% French 396,230 11.1% Welsh 75,875 2.1% Ukrainian 345,410 9.7% American 71,435 2.0% Dutch 182,270 5.1% Danish 59,060 1.7% North American Indian 177,140 5.0% Hungarian 52,025 1.5% Polish 174,380 4.9% Spanish 39,325 1.1% Chinese 155,960 4.4% Austrian 36,670 1.0% Norwegian 152,640 4.3% Vietnamese 32,505 0.9% East Indian 125,105 3.5% Romanian 29,425 0.8% Filipino 113,205 3.2% Lebanese 25,955 0.7%

Note: These numbers add up to more than the total population due to multiple responses Source: Statistics Canada, 2011 Census of Population Living in Alberta Education

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

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

Polytechnical Institutions Northern Alberta Institute of Technology; Southern Alberta Institute of Technology

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

Top Scores in Mathematics, Science and Reading 2012 Program for International Student Assessment (PISA) Examinations Average = 500

Mathematics Science Reading Rank Jurisdiction Score Rank Jurisdiction Score Rank Jurisdiction Score 1 Shanghai-China 613 1 Shanghai-China 580 1 Shanghai-China 570 2 Singapore 573 2 Hong Kong-China 555 2 Hong Kong-China 545 3 Hong Kong-China 561 3 Singapore 551 3 Singapore 542 4 Chinese Taipei 560 4 Japan 547 4 Japan 538 5 Korea 554 5 Finland 545 5 Korea 536 6 Macao-China 538 6 British Columbia 544 6 British Columbia 535 7 Japan 536 7 Estonia 541 7 Ontario 528 8 Quebec 536 8 Alberta 539 8 Alberta 525 9 Liechtenstein 535 9 Korea 538 9 Finland 524 10 Switzerland 531 10 Vietnam 528 10 523 15 Canada 518 11 Ontario 527 11 Chinese Taipei 523 17 Alberta 517 13 Canada 525 12 Canada 523

45 United States 481 37 United States 497 31 United States 498

1. PISA tests 15 year olds' Mathematics, Science and Reading skills 2. The rank is out of 75 jurisdictions Source: Measuring Up: Canadian Results of the OECD PISA Study, Council of Ministers of Education, Canada Living in Alberta Health Care

Selected Health Indicators

Per Capita Government 4.6 Health Expenditures - Alberta Canada** 2012 ($ 000s)*** 3.9

30 Day In-Hospital 6.4 Mortality Rate from Heart Attack* (2009-2012) 7.3

30 Day In-Hospital 13.5 Mortality Rate from Stroke* (2009-2012) 16.0

*Note: Risk Adjusted Percentages **Canada data do not include Quebec due to differences in data collection ***Preliminary Sources: National Health Expenditure Trends, 1975-2012, Canadian Institute of Health Information (CIHI); Health Indicators 2013 Report,(CIHI), Statistics Canada

Living in Alberta Arts and Culture

Private Sector Support of Performing Arts Average Household Spending on Live Sporting and (2010) Performing Arts Events: 2011 (Annual Dollars) Per Capita

Alberta $5.98 British Columbia $183 Ontario $5.12 Manitoba $181 British Columbia $5.11 Alberta $173 Manitoba $3.98 Canada $113 Quebec $3.55 Saskatchewan $105 Ontario Saskatchewan $2.29 $99 Nova Scotia $90 Newfoundland and… $2.22 New Brunswick $72 Nova Scotia $1.44 Quebec $71 Newfoundland and Labrador $56

Note: Excludes statistics for Prince Edward Island and New Note: Excludes statistics for Prince Edward Island which were too Brunswick which were suppressed for confidentiality reasons unreliable to publish

Source: Statistics Canada Living in Alberta Donations and Volunteerism

Charitable Donor Statistics Average Annual Donations, 2010

Alberta $390

Prince Edward Island $390

British Columbia $370

Manitoba $360

Saskatchewan $340 Newfoundland and Labrador $340 Ontario $320

Nova Scotia $310

New Brunswick $300

Canada $260

Quebec $130

Source: Canada Survey of Giving, Volunteering and Participating, Statistics Canada Alberta On-Line Resources Alberta Government : www.alberta.ca

Alberta Innovation and Advanced Education: http://iae.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/business/export-your-products.aspx 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 www.travelalberta.com List of Festivals in Alberta http://travelalberta.com/Event%20List.aspx Vacations Guide http://www.travelalberta.com/en/Vacation_Guides/Pages/default.aspx?mrkt=Canada Provincial Parks http://albertaparks.ca/ Tourism www.tpr.alberta.ca

Working and Living in Alberta: Immigrating www.albertacanada.com/immigration

Things to Do http://www.tpr.alberta.ca Health Care http://www.health.alberta.ca/ Education http://www.education.alberta.ca/ Alberta Learning Information Service http://alis.alberta.ca/ Advanced Education and Technology http://eae.alberta.ca/