CALGARY, ALTA. — Mid-year reports show strong signs of recovery for Alberta’s economy, officials say.
According to the province, drilling activity and oil production have increased while business output remains solid, with manufacturing shipments and non-energy exports up more than 20 per cent year-to-date.
Housing activity and retail spending also continue to be robust. Private sector construction spending is also picking up and the province expects employment will continue to improve.
Alberta has gained more than 103,000 jobs since the start of the year. According to the October jobs report, the unemployment rate fell to 7.6 per cent. Overall, it is forecast to average 8.8 per cent this year, down from 11.4 per cent in 2020. It is forecast to drop to 5.7 per cent in 2024.
The province cited the Job Creation Tax Cut and other efforts to make Alberta a competitive business environment as a major part of the economic success.
The report showed corporate income tax revenue of $2.9 billion is forecast for 2021-22, $1 billion more than what was forecast in February’s budget. This revenue is now forecast to increase by an average of 19 per cent over the next two years to reach $4.1 billion in 2023-24 as growth in investment and profits continue.
“Our persistent focus on attracting new investment and improving competitiveness for our key sectors is making a difference,” said Travis Toews, president of the treasury board and minister of finance, in a press release. “We are seeing billions of dollars of new investment and capital deployed in the province, and it’s happening in hydrogen, tech, aerospace, petrochemicals and many other areas. As we maintain responsible fiscal management, Alberta will reap the rewards of a more stable and prosperous future.”