Alberta rocked a solid performance last year
Alberta’s economy has now surpassed its pre-pandemic level of output
By Siddhartha Bhattacharya, ATB Economics 2 May 2023 1 min read
Industry output in Alberta expanded sharply in 2022 according to new GDP data released by Statistics Canada. The gain was broad-based with our oil and gas and agriculture sectors leading the charge.
Alberta’s real GDP jumped by 5.1% in 2022, almost exactly in line with the 5.0% estimate in our March economic outlook.
With this robust gain, Alberta’s economy joined most of the other provinces and surpassed its pre-pandemic level of output set in 2019.
Although the increase was supported by the majority of sub-sectors (19 out of 20), the energy industry made the largest contribution.
Driven mainly by a sharp rebound in conventional production, the province’s mining, quarrying, and oil and gas extraction industry’s GDP rose by 5.6% from 2021 levels and contributed the most (30%) toward the aggregate provincial gain.
Industries outside the energy sector were also upbeat in 2022. Alberta’s agriculture, forestry, fishing and hunting industry GDP was up by 36.2%—second highest in the country after Saskatchewan (+45.6%)—as a result of strong demand and a better harvest season.
Overall, Alberta ranked second (after Saskatchewan) in the country in terms of provincial GDP growth last year and contributed 0.8 percentage points toward Canada’s 3.6% GDP growth in 2022.
Things have definitely cooled off since then with successive interest rate hikes and inflation staying at sticky levels.
National monthly GDP (seasonally-adjusted at an annual rate) ticked up by only 0.1% on a monthly basis in February 2023, moderating from a 0.6% increase posted in January.
Looking ahead, Statistics Canada’s advance estimate calls for a 0.1% decline in March.
Answer to the previous trivia question: New York City’s Empire State Building officially opened on May 1, 1931.
Today’s trivia question: “Producing a good or service at a lower opportunity cost than other producers” is known as what?