Alberta's Investment Crisis: A Decade of Decline

A decade-long investment crisis has plagued Canada, and Alberta is at the epicenter of this issue. According to research by Steven Globerman published by the Fraser Institute, the country's net stock of productivity-enhancing assets, which includes infrastructure, plants, machinery, equipment, and intellectual property products such as software, experienced a decline in growth rates since 2014.

From 1990 to 2014, Canada's net stock grew at an average annual rate of 2.4 percent before declining to 1.1 percent from 2014 to 2018, and further dropping to 0.99 percent from 2018 to 2025. Alberta, once a leader in investment growth with an average annual rate of 4.4 percent from 1990 to 2014, experienced a sharp decline, with its net stock actually becoming smaller in 2025 than in 2014.

The Trudeau government's policies since 2015 have been blamed for discouraging investment in the oil and gas sector, which drives economic growth in Alberta. The lagging investment performance of Canada's main energy-producing provinces has not only hurt Canada's overall investment performance but also contributed to political friction between the federal and provincial governments.

The recent memorandum of understanding (MOU) between Alberta and the federal government is seen as a recognition of the geographically concentrated impact of national energy policies. This acknowledgment is crucial for addressing the economic concerns of provinces like Alberta and promoting interprovincial free trade.