Highlights of the Alberta Economy 2011

Alberta Treasury Board and Enterprise Division

December 2011 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 – 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 – 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

26.5 GDP 20.4

42.0 Goods Exports -3.0

88.0 Investment 73.4

Source: Statistics Canada and Alberta Treasury Board and Enterprise Economic Highlights Economic Prosperity

Economic Diversity: 1985 Economic Diversity: 2010 Percentage Distribution of GDP Percentage Distribution of GDP Total GDP: $66.8 Billion Total GDP: $263.5 Billion

Construction Construction 6.7% 9.6% Agriculture Agriculture Energy 3.0% Energy 1.5% 25.7% Health 36.1% Health 3.6% 5.3% Education Manufacturing 6.2% 3.6% Education Public 3.8% Transportation & Administration Utilities 4.8% Public 6.3% Retail & Wholesale Manufacturing Administration 8.1% 6.0% 3.8% Retail & Wholesale Business & Transportation & 8.6% Commercial Tourism & Utilities Services Consumer Services Business & 7.7% Tourism & 9.4% 3.8% Finance & Real Finance & Real Commercial Consumer Services Estate Services Estate 11.0% 5.0% 14.8% 5.5% Sources: Statistics Canada and Alberta Treasury Board 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 ($78.6 Billion)

Crude Petroleum 39.3

Gas and Gas Liquids 14.1

Petrochemicals 6.2

Metals & Machinery 4.4

Crops & Livestock 3.3

Processed Food & Beverages 3.3

Forestry Products 2.3

Refined Petroleum Products 1.6 $ Billions Sulphur & Coal 1.2

Electronic & Electrical Products 0.8

Others 2.2

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

Alberta’s Energy Revenues 2010 Alberta’s Energy Exports 2010 Total: $73.2 Billion Total: $53.9 Billion

Natural Natural Gas Coal and Gas & Gas Coal and & Gas Sulpur Liquids Sulphur Liquids 1.5% 25.4% 32.5% 2.4%

Crude Oil 65.9% Crude Oil 72.1%

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

A Diversified and Resource-based Economy Agriculture

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

Beef Cattle 3.07

Other Receipts* 2.04

Canola & Flax 1.71

Wheat (incl. Durum) 1.13

Dairy 0.48

Hogs 0.37

Oats, Rye & Barley 0.19

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

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 Manufacturing

Value of Alberta Manufacturing Shipments 2010 Total: $60.1 Billion

Refined Petroleum 14.7

Food 10.7

Chemical Products 10.5

Machinery 6.2

Fabricated Metals 4.4

*Forest Products 4.0

Construction Materials 2.0

Plastics 1.4

Furniture and Fixtures 0.8 $ Billions

**Electronic Products 0.4

Other Manufacturing* 4.9

*Includes wood and pulp & paper industries **Includes telecom equipment Source: Statistics Canada A Diversified and Resource-based Economy Advanced Technology Broadband Usage

Korea 96 Norway 78 Canada 72 Broadband Usage– International 2009 Percentage of Households Germany 65 Accessing the Internet by Broadband Japan 60 France 57 British Columbia 81 Italy 39 Alberta 79 Ontario 74 Broadband Usage– Canada 2009 Canada 72 Percentage of Households Manitoba 71 Accessing the Internet by Broadband Nova Scotia 70 Prince Edward Island 70 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-based Economy Financial Services

Alberta 26

Quebec 22 Financial Services Employment Growth 2002 - 2010 21 Ontario Percentage increase in Employment

Canada 20

BC 17 Alberta 58

BC 38

Canada 31 Financial Services GDP Growth 2002– 2010 Percentage increase in GDP Ontario 27

Quebec 27

Source: Statistics Canada A Diversified and Resource-based Economy Tourism Alberta Tourism Receipts by Visitor Overnight Tourism by Tourism Origin (2009) Destination Region (2009) Total : 40.4 Million Person Nights Total: $5.4 Billion

Alberta 53% Edmonton & Alberta Area Central 22% 17%

Alberta North 6% Canadian Unspecified Rockies Region 15% 3% Overseas 13% Alberta South Other Canada 10% 23% United States Calgary & Area 11% 27%

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

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

Alberta $45.90

Newfoundland and Labrador $45.80

Saskatchewan $41.80

Ontario $38.50

Canada $38.40

Quebec $36.40

British Columbia $35.10

Manitoba $34.60

New Brunswick $30.70

Nova Scotia $29.00

Prince Edward Island $26.20

Source: Statistics Canada – GDP at basic prices Doing Business in Alberta Entrepreneurship

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

15.5% Alberta 14.0% Ontario 9.3% British Columbia 6.3% Canada -0.4% Manitoba -2.7% Quebec -4.0% Newfoundland and Labrador -5.2% Nova Scotia -8.2% Saskatchewan -9.2% New Brunswick -19.1% 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 (2010-2011)

9.6% Alberta

-6.4% Saskatchewan

-14.7% British Columbia

-23.1% Manitoba

-28.6% Newfoundland & Labrador

-30.4% New Brunswick

-33.3% Prince Edward Island

-33.5% Ontario

-34.0% Canada

-38.2% Nova Scotia

-49.4% Quebec

Source: Conference Board of Canada 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 Tax Foundation 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 Province General & Processing Business State General & Processing Business Alberta 10 10 3 Oregon 7.6 7.6 6.6 British Columbia 10 10 2.5 California 8.84 8.84 8.84 New Brunswick 10 10 5 North Dakota 6.4 6.4 6.1 Quebec 11.9 11.9 8 Montana 6.75 6.75 6.75 Manitoba 12 12 0 Idaho 7.6 7.6 7.6 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 7.6 7.6 4.8 Prince Edward Island 16 16 1 Louisiana 8 8 7.1 Nova Scotia 16 16 4.5 Arizona 6.97 6.97 6.97

Federal 16.5 16.5 11 Federal 35 31.85 34 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 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 Manitoba 4.6 5.4 Alberta 4.2 6.5 British Columbia 5.4 7.6 Quebec 7.8 2005 - 2009 7.9 2010 Canada 6.7 8.0 Ontario 7.0 8.7 New Brunswick 8.7 9.3 Nova Scotia 8.2 9.3 Prince Edward Island 11.0 11.3 Newfoundland and Labrador 14.5 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 province’s 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 xTa Total Provincial Tax

Alberta $7,229 $28,801 Comparison of Provincial and British Columbia $9,277 $30,889 Federal Taxes by Province Sasaktchewan $9,824 $31,393

Two-Income Family of Four - Ontario $11,157 $32,761 $125,000* New Brunswick $12,183 $33,725

Newfoundland & Labrador $13,246 $34,786 *As of March 2011 $13,811 Note: Unlike in previous Highlights of the Manitoba $35,318 Alberta Economy presentation reports, tobacco Prince Edward Island $14,309 $35,808 taxes were not included in the personal taxes calculations since most Albertans do not Nova Scotia $14,644 $36,134 smoke. Alberta’s rankings will not change even if tobacco taxes were included in the Quebec $17,426 $39,173 comparisons. Source: Alberta Finance Total Provincial Tax Total Tax Working in Alberta Family Income

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

Alberta $77,800

Saskatchewan $69,900

British Columbia $67,200

Ontario $66,200

Canada $63,800

Manitoba $62,400

Quebec $57,300

Prince Edward Island $55,800

Nova Scotia $55,100

New Brunswick $55,000

Newfoundland and Labrador $53,900

Source: Statistics Canada Working in Alberta Standard of Living

Index of Economic Well-Being Index of Economic Well-Being Provincial Comparison, 2010 International Comparison, 2009

Alberta 0.731 Norway 0.799 Denmark 0.684 Newfoundland 0.638 Alberta 0.676 Saskatchewan 0.624 Germany 0.650 Prince Edward Island 0.567 Belgium 0.648 Sweden 0.637 Manitoba 0.561 Netherlands 0.636 Canada 0.561 Finland 0.626 Quebec 0.549 France 0.609 Canada 0.575 Ontario 0.543 United Kingdom 0.562 British Columbia 0.543 Australia 0.559 New Brunswick 0.501 Italy 0.532 United States 0.482 Nova Scotia 0.498 Spain 0.451

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 Education

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

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

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 Note: Full Time and Part Time Students, 2009-2010

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 do 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: 2009 (Annual Dollars)

Alberta $6.35 Saskatchewan $141 Alberta $135 Ontario $5.77 Manitoba $123 British Columbia $4.64 Ontario $113 Canada $105 Manitoba $4.46 Prince Edward Island $101 Quebec $3.17 British Columbia $98 Quebec $88 Saskatchewan $2.34 Nova Scotia $80

Nova Scotia $1.80 New Brunswick $72 Newfoundland and Labrador $56

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 Donations and Volunteerism

Charitable Donor Statistics Median Annual Donation Per Taxfiler, 2009

Alberta $370

Prince Edward Island $370

British Columbia $360

Manitoba $340 Newfoundland and $340 Labrador Saskatchewan $330

Ontario $310

Nova Scotia $300

New Brunswick $290

Canada $250

Quebec $130

Source: Statistics Canada Alberta On-Line Resources

Alberta Government : www.alberta.ca

Alberta Treasury Board and Enterprise: www.treasuryboard.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 www.travelalberta.com List of Festivals in Alberta http://www.culture.alberta.ca/arts/artsfestivals/ 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 and http://culture.alberta.ca/arts/artsfestivals/default.aspx 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://www.advancededucation.gov.ab.ca/