Capital expenditures in Alberta on the rise in 2021
By ATB Economics 1 March 2021 1 min read
According to Statistics Canada, annual capital expenditures on non-residential construction and machinery and equipment in Alberta are expected to increase by 5.1 per cent ($2.5 billion) in 2021.
Nationally, capital spending is slated to improve this year by 7.0 per cent ($17.5 billion).
Capital spending is an important source of economic activity and an indication of the general direction of the overall economy.
Spending in Alberta in 2021 will be down by 12.0 per cent ($7.2 billion) compared to the pre-pandemic level set in 2019.
The gap is smaller for the country as a whole at 2.8 per cent ($7.6 billion). If Alberta is excluded, national spending this year will be only 0.2 per cent ($0.4 billion) below its pre-pandemic level.
The oil and gas extraction sector will account for about a third of total capital spending in Alberta in 2021.
Oil and gas spending this year is expected to come in 3.0 per cent ($0.5 billion) higher than in 2020, but will still be 31.5 per cent ($7.8 billion) below where it was in 2019.
Answer to the previous trivia question: Edmonton is 661 km from the U.S. border (according to Google Maps).
Today’s trivia question: Which is larger? The expected capital spending in 2021 by Ontario’s manufacturing sector or Alberta’s oil and gas extraction sector?