Investment

Total private and public capital expenditures in any given year. This includes expenditures on construction, machinery and equipment.

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Investment ($ million)

Trend % CHANGE
Investment ($ million)
TREND: INC DEC NO CHG POS NEG
Investment ($ million)
TREND: INC DEC NO CHG POS NEG

Analysis

PUBLISHED - Feb 28, 2018

In 2017, non-residential capital investment in Alberta fell by 6.0% from 2016 to $57.2 billion. (This estimate excludes residential investment.) Spending on machinery and equipment fell 9.8%, while construction spending fell 4.8%. Most of the 2017 decline was the result of lower oil and gas extraction investment which fell 6.7% to $22.5B billion, while manufacturing declined 30.7% to $1.5B. Major sectors with the highest investment growth in 2017 were real estate, rental and leasing (up 16.4%), professional, scientific & technical services (up 13.5%) and information and cultural industries (up 8.4%). In 2017, Alberta's per capita investment spending was $13,337, the second highest spending of all provinces behind Newfoundland and Labrador ($16,227), and more than two times the Canadian average of $6,450 per capita. In 2018, Alberta investment is forecast to drop by 5.3% from 2017 to $54.1 billion (based on investment intentions for 2018). This decline is a result of the construction cycle of major oil sands developments completing, which is expected to result in a 20.4% decline in investment to $10.2 billion. Conventional oil is expected to decrease by 3.9% to $12.3 billion. Construction spending is expected to decrease 6.9% while spending on machinery and equipment will remain relatively unchanged (down 0.2%). The strongest growing sectors in 2018 are expected to be petroleum and coal products (up 119.5%), chemicals & chemical products (up 75.4%), food & beverages (up 74.1%), Support activities for mining (up 43.1%), professional, scientific and technical services (up 38.8%). Large declines are expected for educational services (down 28.2%), machinery (down 19.7%), and primary & fabricated metals (down 12.9%).