Often referred to as the "energy province," Alberta is Canada's most dynamic and fastest-growing province, as well as the country's engine of economic growth thanks to its large energy sector. Although its economy was in recession in 2016, the province has always led the country in economic growth. Its GDP was CAD 339.2 billion in 2017, representing 15.9% of Canada's GDP. As a result of this economic growth, Alberta is now one of the most popular immigration destinations due to its economy and quality of life. The province has the lowest unemployment rate in the country at 3.9%, well below the national average of 6.8%. This unemployment rate, combined with population growth and job creation, indicates that there are many job opportunities available for immigrants wishing to settle in the region. The province also has a low tolerance for economic interventionism. As a result, it has the lowest level of taxation in Canada with the lowest personal income taxes in the country.
On average, the province's 4.2 million residents are the youngest of all Canadian provinces with a median age of 36.3 years. In addition, 68.7% of the workforce is 25 years old and has a university degree or post-secondary certificate.
The provincial capital of Edmonton is the seat of Alberta's government. Alberta is a parliamentary democracy with a Legislative Assembly of 87 members. Alberta's politics are much more conservative than those of other Canadian provinces. The current government is formed by the United Conservative PartyThe current government is formed by the United Conservative Party, created in 2017 by the merger of the Wildrose Party and the Progressive Conservative Party. As of October 11, 2022, the Premier of Alberta is Danielle Smith.
Alberta's economy is based on energy, forestry, agriculture and tourism resources. The economy is led by the energy industry, one of the province's largest employers, with over 275,000 jobs. In addition to the oil and gas industry, the forestry industry remains important, with a value of more than $4 billion Canadian per year. Alberta also has an important agricultural industry, which is a large part of the province's culture and economy. In 2020, agricultural exports totaled over C$12.4 billion, including C$5.8 billion in primary agricultural products and C$6.7 billion in value-added products, and employed over 69,800 Albertans. Alberta's agricultural production is largely for export.
International surveys rank Calgary and Edmonton among the best cities in the world to work in. Calgary is home to almost all of the head offices of Canadian and foreign oil and gas companies. Edmonton is the industrial backbone of the Fort McMurray oilfields.
While the oil and gas sector remains the largest industry in the province (16% of the province's GDP), GDP shares in other sectors such as construction, real estate, finance, insurance, and beef and grain sales are also significant.
And with two of the country's largest international airports, integrated rail and intermodal infrastructure, and a thriving trucking industry, Alberta offers access to the world's largest markets. Air and land routes run from Edmonton to Alaska, the Canadian Northwest and connect to global transportation routes.
The food processing sector in Alberta has grown rapidly in recent years. In 2020, it was the largest manufacturing sector in the province with C$15.5 billion in food manufacturing sales. Alberta also has more than 20 research and innovation and innovation centres specializing in crops and grains, poultry and pork, agronomy, biomaterials and food safety. The federal and provincial governments provide significant tax incentives for research and development projects in these areas. The sector is also supported by academic institutions that conduct research and offer programs in agriculture and agribusiness. Farmers and ranchers collaborate with this technology ecosystem to develop and implement innovative technologies to produce higher yields, while maintaining the quality and sustainability of their products. It has been estimated that Alberta agribusinesses will spend C$684 million on digital transformation by 2024.
Alberta is Canada's largest crude oil producing province and accounted for 80% of the country's total production in 2020. More than three quarters of Alberta's crude oil production comes from the oil sands located in the north of the province. With estimated reserves of 170 billion barrels of oil, or 13% of the world's reserves, Alberta is also the third largest oil reserve in the world behind Venezuela and Saudi Arabia.
The viability of the province's current petrochemical industry depends on access to a secure and economic long-term supply of liquid natural gas feedstocks (particularly ethane) and the ability to develop appropriate products at competitive prices for international markets. Companies in the sector range in size from a few employees to several hundred. The province also has the highest number of engineers per capita in the country, with a large pool of skilled petroleum and chemical engineers. The region's skilled workforce is made up of a variety of profiles, ranging from tradespeople to environmental specialists, human resources and engineers.
Alberta's oil and gas industry is the most successful in the world in many aspects of energy development. Collaborations between industry, government and academic institutions are directly responsible for the key technologies currently used in Alberta's energy sector.
Alberta is an ideal location for the aviation industry because of its abundant land and wide open spaces that provide excellent flying conditions. This makes the province anideal place to train pilots, especially as the global industry faces a labour shortage. Business aviation is also a major contributor to Alberta's economy. The province is home to 420 of the 1,900 business aircraft registered in Canada. Alberta companies also maintain, repair, overhaul and convert military and commercial aircraft. This high-tech sub-sector also produces a variety of components, such as aircraft parts and engines.
Based in Calgary, WestJet Airlines offers scheduled flights to 100 destinations in North America, Central America, the Caribbean and Europe.
In addition, the aviation sector is supported by extensive rail and road networks, as well as major logistics and warehousing centers. As the northern portion of the CANAMEX corridor and home to two transcontinental rail carriers, Alberta is a major player in ground transportation. The province has the third largest freight trucking industry in the country with 3,622 companies. As e-commerce continues to grow, the demand for aviation and efficient logistics is increasing and Alberta is positioning itself as a major distribution hub in North America.
The province of Alberta is a leader in energy decarbonization. Over the past decade, the province has reduced the carbon intensity of its electricity grid and oil and gas sector. By 2023, Alberta's electricity generation will be coal-free and the electricity system will produce about 20 megatonnes of total greenhouse gas (GHG) emissions per year, less than half the 2015 level. In addition, the province will meet its methane reduction target of 45% by 2025, demonstrating its commitment to reducing carbon emissions. Alberta was the first regional government in North America to commit to reducing methane emissions from the oil and gas sector.
The province is also home to two of the world's 18 GHG emission reduction projects. The most recent, the Alberta Carbon Trunk Line, can sequester 14.6 million tonnes of carbon dioxide per year. The captured carbon is then used to produce hydrogen. Alberta, along with British Columbia and Saskatchewan, can produce hydrogen at half the wholesale cost of diesel and has the largest carbon capture and storage resources in Canada. The strong commitment to the environment in the energy sector provides investment opportunities, including in clean technologies and environmental services related to energy decarbonization.
The province has developed global expertise in asset management, trading, mergers and acquisitions, corporate banking, equity issuance and insurance.
Financial technology companies have specialized in blockchain, crypto-currency, insurtech, payment technology, capital markets and investments, among other areas. Fueled by significant investments in the energy sector, Alberta's financial services have experienced exceptional growth over the past decade.
Calgary is considered one of Canada's four global financial centers, with a cluster of more than 1,400 financial services firms employing over 20,000 people. The city is also home to an emerging fintech network that is well integrated with global markets. In addition, 75% of the top 20 global investment banks have branches in Alberta. Edmonton is one of Canada's leading centers for asset management and entrepreneurial banking. Four of Western Canada's largest financial institutions are headquartered in Edmonton, including one of the country's largest institutional investment fund managers.
With a strong talent pool, Alberta is a global technology hub. The province is home to more than 3,000 technology companies.
Edmonton is one of three centers at the heart of the Government of Canada's Pan-Canadian Artificial Intelligence (AI) Strategy, designed to build the country's expertise in artificial intelligence and machine learning (ML). DeepMind, Google's artificial intelligence subsidiary, praised the incredible emerging talent at the University of Alberta when it chose Edmonton for its first research lab outside the UK. Benevity, Shareworks, Enverus Intelligence Research Inc. and Parvus Therapeutics are all based in Calgary.
Agriculture is the second most important sector in Alberta. The province produces and exports a significant amount of high quality primary and processed agricultural products. Approximately one-third of Alberta's land area is in agricultural use. Half of this agricultural land is used to grow crops and the rest is used to raise livestock. With 20.3 million hectares of farmland, abundant sunshine and extensive irrigation systems, the crop sector is highly diversified. Farms are primarily devoted to beef, canola and grain crops. Specialty crops such as sugar beets, potatoes, peas and mustard seed are also important.
Beef cattle dominate livestock production making Alberta the leading beef producing province in Canada. Hogs, poultry and sheep are also raised in the region.
Forests cover over half (58%) of Alberta's land area, or 38 million hectares. Of this forested area, approximately 60% (22.5 million hectares) is considered suitable for harvesting. Aspen, white spruce and pine are the main commercial species and are used in the production of lumber, oriented strand board, newsprint, pulp and paper.
Annually, the provincial government authorizes the harvest of 30.7 millionm3 of trees, of which 18.7 millionm3 are coniferous and 12 millionm3 are hardwood.
Alberta is a world leader in the gas industry. Located in the heart of the Western Canadian Sedimentary Basin, the province is home to vast natural gas deposits and produces more than 70% of the country's marketable natural gas and essential minerals including lithium and magnetite. The province's natural gas is competitive and trades at a discount to U.S. suppliers, producing an affordable and reliable feedstock for petrochemical plants. In 2020, Alberta produced an average of 9.72 billion cubic feet per day of natural gas, representing 63% of total Canadian production that year.
Alberta also has several petrochemical plants capable of converting ethane, methane and propane into value-added products such as gasoline, fertilizer and plastics. The province's four ethane crackers have a production capacity of 4.1 million tonnes per year, representing almost 80% of Canada's total ethylene production capacity.
The federal and provincial governments are committed to partnering with industry to address industry challenges. The province provides a business-friendly climate with a strong emphasis on research and development. The federal government offers significant tax incentives and the most generous tax regime for research and development in the G-7.
Tourism in Alberta is an important driver of the province's economy. The sector supports over 127,000 jobs and generated approximately C$8.3 billion in tourism spending in 2014. 40% of this spending, or approximately $3.3 billion, came from out-of-province resident visitors and international tourists.
Alberta has 5 UNESCO World Heritage Sites, over 480 provincial parks, 18 provincial historic sites and 5 national parks. The province contains a large portion of the Rocky Mountains. Alberta's most iconic tourist destination is the beautiful Banff National Park and its emerald green Lake Louise. With over 6,000 square kilometers of unspoiled landscape, the region is home to numerous hiking trails, campgrounds, ski hills, golf courses, hot springs and wild rivers ideal for rafting.
In terms of exports, Alberta plays a prominent role in Canada. For example, in the agri-food sector, the province is the largest exporter of meat products and the third largest exporter of agri-food products in Canada, behind Saskatchewan and Ontario. The United States remains Alberta's largest trading partner, accounting for 40.5% of exports. Exports to China are Alberta's second most important market, followed by exports to Japan.
TheCanada-U.S.-Mexico Agreement (CUMA) is a revised version of the North American Free Trade Agreement (NAFTA), signed on January 1, 1994, which was intended to facilitate trade between the United States, Mexico and Canada. In addition to being the most ambitious trade agreement in history, NAFTA also created the world's largest free trade area and brought together two wealthy developed countries and one less developed state. As a result, the agreement has fostered the development of international trade by removing tariff and non-tariff barriers and domestic regulations that could restrict the import of goods and services. In 2017, U.S. President Donald Trump threatened to renegotiate the agreement or even cancel it. After numerous renegotiations, NAFTA was replaced by the MEPA on July1, 2020. This new agreement facilitates the temporary entry of business people who are U.S., Mexican or Canadian citizens and who are engaged in trade in goods or services or in investment activities. The agreement also eliminates the need for all business persons subject to the agreement to obtain a labor market impact assessment. Finally, for professionals and intra-company transferees, the MWEA expedites the application process as the application can be submitted at the port of entry.
The European Union (EU) is Canada's second largest trading partner. TheComprehensive Economic and Trade Agreement (CETA) between Canada and the European Union offers Canadian businesses preferential access to the EU market and excellent opportunities for growth in the region. September 21, 2022 marks the fifth anniversary of the provisional application of CETA. The agreement will enter into full force once all EU Member States have completed the ratification process. Until then, the provisional application of CETA continues and remains available to Canadian and European businesses. Since its inception, CETA has led to a significant increase in bilateral trade and provided a particularly favourable environment for entrepreneurs on both sides of the Atlantic.
Alberta offers interesting prospects for French companies specializing in the research and exploitation of hydrocarbons (crude oil), who wish to establish and develop in North America