Alberta Separation Report Warns of Economic Disruption and Billions in Costs

A report on Alberta's separation from Canada has found that establishing a new country would cost tens of billions of dollars, potentially as much as $170 billion in the first five years. The study, commissioned by the Danielle Smith government, examined the potential economic impact of separation and presented two scenarios: 'smooth' and 'difficult' transitions.

The report found that even after 20 years, employment could be nearly five per cent lower and Alberta's economy more than 16 per cent smaller if the province separated from Canada. In a difficult transition scenario, limits on trade and market access would create lasting economic challenges for both Alberta and Canada.

The University of Calgary's School of Public Policy report also notes that separating from Canada could result in higher taxes, an ongoing annual budget deficit of more than $30 billion, and reduced resource development. However, a smoother transition could lead to long-term benefits, including higher income and lower taxes for Albertans.