Alberta is blessed with an abundance of natural advantages that form the foundation of its thriving economy. The Alberta government has built on this foundation by fostering a positive business climate based on low taxation to attract investment, create diversity, and encourage Alberta’s businesses to compete successfully around the globe.
Over the last decade, Alberta has had the highest rate of economic growth in Canada at 3.7%. In 2005, Alberta's economy grew by an estimated 4.5% and experts predict Alberta will have one of Canada's top performing economies in the future.
Alberta's exports of goods and services more than tripled between 1995 and 2005 to $86.1 billion. A growing number of those exports are manufactured products and services. Exports of manufactured goods almost doubled over the same period.The value of Alberta merchandise exports in grew by 19.4% in April 2006, compared to April 2005.
Alberta has had a rapidly growing manufacturing base. Between 1995 and 2005, manufacturing shipments more than doubled to $59.4 billion. Manufacturing shipments were up 9.6% in 2006 from the first four months of 2005.
The province consistently has the highest investment per capita among provinces. In 2005, Alberta investment per capita was $18,250, more than twice the national average. A total of $60.3 billion was invested in 2005, almost triple the 1995 level.
Alberta's vibrant economy translates into a healthy job market. Average annual employment in the province in 2005 increased by 26,900 over 2004. Approximately 420,000 new jobs were created between 1995 and 2005.
Alberta's average unemployment rate in 2005 was the lowest in Canada at 3.9%. In May 2006, Alberta's unemployment rate was 3.4%, well below the national average of 6.1%. In the last 12 months, Alberta created 93,000 jobs, the largest increase since 1981.
Alberta has one of the lowest overall tax systems in Canada boasting:
No provincial sales tax.
No provincial general capital tax or payroll taxes.
No machinery & equipment tax.
The corporate income tax rate in Alberta is being restructured with a target of 8%. Once achieved, the combined federal/provincial corporate income tax rate would be less than 30.1% making Alberta one of the most competitive business tax environments in North America.
