2017 GDP and Economic Outlook - Alberta

2017 GDP and Economic Outlook – Alberta By: Paul Young, CPA, CGADate: December 8, 2016

Presenter / Paul Young, CPA, CGA

• 25 years in Corporate Finance• CPA/CGA since 1996• Educator for CGA/CPA

Introduction

This presentation will discuss Alberta Economic Outlook for 2017• Government spending• GDP• Oil Prices• Employment

Alberta Economy

Rental Market:

• It's never been a better time to rent in Calgary, but it's coming at a cost to landlords. A recent report published by a Calgary real estate company has found that close to 40 per cent of private rental units currently listed in Calgary are sitting empty.

• Using data from Kijiji, RentFaster.ca and its own operations, Hope Street Real Estate Corporation found that there are currently 8,102 rental properties listed for rent in Calgary, and 37 per cent of those properties do not have a tenant living in them

http://www.huffingtonpost.ca/2016/11/29/calgary-rental-vacancy-rate_n_13307314.html

Labour Market• 2016 jobs were

part-time• Capital investment

in the oil patch has been scaled back 20-30% in 2016

• Two pipelines approved

Policies Rate ComparisonCorporate Taxation 12% • British Columbia 10%

• Ontario 11.5%• Quebec 11.9%

Small Business Corporate Taxation

3% (proposed reduction to 2%)

• Ontario 4.5%• British Columbia 2.5%• Saskatchewan 2%

Minimum Wage $12.20 • Ontario $11.40• British Columbia $10.85• Saskatchewan $10.72

Hydro Rates 6.543¢/kWh (EMAX) • Hydro Ottawa - 13.969 ¢/kWh

• Hydro Quebec - 7.630 ¢/kWh

Carbon Taxation $20 per ton • Ontario $19.40 per ton (estimate)

• British Columbia $30 per ton

Combine that with the absence of provincial sales and payroll taxes, comparatively low personal income tax and no health premiums, Shannon Phillips said, and Albertans have a $7.5-billion overall tax advantage. – Edmonton Sun

• It is not just one policy but many policies that impact business investment

• Alberta is moving forward with carbon tax which will hurt competitive position for business

• Alberta moving away from coal to clean technology which will likely cause hydro rates to climb

• Alberta increase minimum wage which impacts small business more than medium to large businesses

• Alberta has some highest labor rates in Canada

Hydro Rates

Other Resources

• Skills Gap - http://www.thewhig.com/2016/04/05/job-skills-gap-worsening-study-finds• Slow Economy - http://www.slideshare.net/paulyoungcga/gross-domestic-product-gdp-canada-july-2016• Wage Growth - http://www.slideshare.net/paulyoungcga/wages-and-employment-canada-july-2016• Housing Costs -

http://www.slideshare.net/paulyoungcga/real-estate-trends-and-analysis-for-canada-august-2016• Youth Unemployment -

http://debatepost.com/2016/09/14/canada-continues-importing-unskilled-immigrant-while-unemployment-rate-climbs-to-7/

• Career Management/Innovation - http://www.slideshare.net/paulyoungcga/2016-employment-outlook-canada

• Government Spending - http://www.slideshare.net/paulyoungcga/government-policies-healthcare-and-education-canada