Newsrelease

October 6, 1998
Edmonton, Alberta

"To conclude that Quebec’s economy is healthier than Alberta’s is nonsense. Our unemployment rate is 5.5%; theirs is 10.5%. Our average weekly wage is $616; theirs is only $568."

Alberta’s economy continues to lead nation

Private sector economic forecasters, credit rating agencies and employment statistics provide a clear indication that Alberta’s economy continues to lead the country, said Provincial Treasurer Stockwell Day in response to an October 5 Globe and Mail series of articles that placed Alberta’s economy seventh in Canada.

"While we wouldn’t normally respond to a newspaper article, we couldn’t let the Globe and Mail’s conclusion that Quebec has the healthiest economy go unchallenged," Day said. "It would be foolhardy to conclude that one provincial economy is healthier than another based on the narrow group of statistics used to develop the articles."

Also, the relative weights given to the various statistics is questionable. The articles themselves point to a GDP forecast of 4.1 per cent for Alberta in 1998 – that’s the second highest ranking in Canada and well above the national average of 3.2 per cent. "With GDP at number two, how do we end up in seventh-place?" Day questioned.

In addition, the Globe and Mail index focuses on growth rates that are often not meaningful. For example, Alberta’s housing starts are at record levels. In actual numbers we exceed Quebec. "The fact that their growth rate is higher simply means that they’re emerging from a terribly difficult period. And when you consider that Quebec has three times our population, we’re miles ahead."

The index is also questionable as it compares the last six months to the previous six months. Most indexes would compare a six-month-period this year with the same period last year. "It only makes sense to compare apples with apples," Day said.

In the first half of 1998, Alberta’s population increased by a record-breaking 28,000 people. "More Canadians are moving to Alberta than to any other province. We’re experiencing an unprecedented increase in newcomers," noted Day. "I think those numbers speak for themselves."

For further information, please contact:

Shannon Taylor
A/Director of Communications
Alberta Treasury
(780) 427-5364

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