Alberta's projected budget surplus has grown to a whopping $4 billion CAD, up from an earlier estimate of $2 billion in April. Alberta is one of the few provinces in Canada to be running a budget surplus, and is providing much of force behind Canada's larger economic growth.
However, the province's economy is still volatile. The Canadian dollar's meteoric rise is causing Alberta to lose revenue, as capital investment is made in increasingly expensive Canadian dollars, while exports are in US dollars. Alberta's growing oil revenue more than offsets this, contributing to the province's budget surplus. Even a small decrease in the value of the Canadian dollar would go a long way towards stabilizing the Albertan economy, causing even further economic growth.
The surplus is excellent news for Alberta, as much of is is expected to go towards capital intensive building projects, as well as forestry conservation measures. Anything left over may be used to help cushion the province from the ups and downs of the Canadian dollar.
What remains unclear is how Alberta intends to spend on capital projects while it experiences a severe labour shortage. The shortage of workers in Alberta, even at the extremely high wages they can command in the province, is one of the few things that can damped the provincial economy. The provincial government desperately needs more people to work in Alberta, either via immigration or migration from other provinces, if it is to effectively spend on capital and building projects.
http://www.liveworkalberta.com - Live and Work in Alberta. Information for newcomers to Alberta.
