Yahoo Finance Canada’s oil-rich provinces top global economic performers: report
Want to know how to get a good grade in economics in Canada? It helps if you live in a place that gushes oil.
According to the Conference Board of Canada’s first “How Canada Performs: Economy” report card, Alberta, Saskatchewan, and Newfoundland and Labrador each get an “A+” for economic performance.
Meantime, the other provinces get a “B” and below. New Brunswick and Nova Scotia received the worst grades, or a “D,” while the rest of Canada was in the middle of the pack.
Alberta, Saskatchewan, and Newfoundland and Labrador are not only the top-rated regions in Canada, but in the overall report card that also looks at 16 advanced nations.
“These provinces are endowed with energy and other resources that have experienced strong global demand in recent years,” the report states. “The benefits of resource exports, particularly energy, have led to rising incomes in these provinces and higher consumer spending. This spending, in turn, has boosted the services sector and real estate activity.”
Canada ranked 5th overall when compared to other advanced countries in the Conference Board report. It measured economic performance by considering three main factors; economic wealth, economic disadvantage and hardship and economic sustainability.
Of course we’ve heard all this before about Alberta, which another recent survey said was the best place to live in Canada. It all comes down to money.
The Conference Board report says Alberta’s per capita income in 2013 that was $10,000 higher than that of Norway, the top-ranked peer country.
Saskatchewan stood out for its 3.4-per-cent employment growth in 2013, the highest among all regions in the report card. Its 4-per-cent unemployment rate was also the second lowest after Norway.
Ontario, which is in the midst of a provincial election based largely on economics, was the highest-ranking “B” province. Ontario earned high marks for employment growth in 2013, relative to the year before, but fell down in areas such as income per capita and growth in labour productivity.
“Ontario’s middle-of-the-pack performance is a result of subdued export demand due to the double- whammy effect of a strong loonie and a sluggish U.S. economy,” the report states. “What’s more, chronically high fiscal deficits and rising debt levels have made it difficult for the province to invest in education and innovation, the building blocks for productivity growth and, ultimately, an improved standard of living.”
B.C.’s grades were high for greenfield foreign direct investment, which is the expansion of an existing facility or creation of a new one, but the province suffered in the areas such as income per capita and employment growth.
“A decline in residential construction activity and stiff competition from neighbouring Alberta for labour resources has also hurt the province,” the report says.
Canada’s overall grade was a “B,” similar to Switzerland and Sweden, but below Australia, Ireland and the U.S.
“For Canada as a whole and for several provinces, many of these grades are more of a reflection of recent sub-standard performance of its global peers, particularly in the Eurozone countries and the United States,” said Conference Board chief economist Glen Hodgson. “However, a common denominator for many provinces is their lagging productivity performance. This presents an enormous challenge for future economic prosperity.”
Here’s the Conference Board’s overall report card for the provinces:
“A” – Alberta, Saskatchewan, Newfoundland and Labrador
“B” – Ontario, B.C., PEI
“C” – Manitoba, Quebec
“D” – Nova Scotia, New Brunswick
Here’s a report card for the 16 advanced nations
“A” - Australia, Ireland, United States, Norway
“B” – Canada, Switzerland, United Kingdom, Sweden, Germany, Austria
“C” - Japan, Denmark, Netherlands
“D” - Belgium, Finland, France
