The Prairie provincial economies are highly trade-exposed. In 2024, the Prairies accounted for $249 billion (34%) of Canada’s international goods exports.
U.S. and Chinese tariffs on Canadian exports, along with retaliatory measures are adding costs, lost revenues, and uncertainty for businesses.
Productivity lags
Compared to the U.S., Canada’s productivity performance has lagged for decades, and among the G7 countries, Canada is second only to Italy in productivity decline.
Growing the clean energy sector
Significant decline in oil and gas sector capital spending since the 2015-16 oil price collapse is shrinking what was once the Prairies’ investment advantage.
Prairie greenhouse gas emissions are now larger than in the rest of Canada, combined.
Concerns about energy transition, resiliency, and the transportation infrastructure needed to get product to market.
Regulatory uncertainty is creating a challenging environment for the sector and SMEs in the oil and gas supply chain.
Extreme weather
Increased frequency and severity of natural disasters, such as the 2024 Jasper wildfires, impacting small businesses and local communities.
Increased frequency of droughts resulting in poor crop yields and quality, culled herds, and low water levels for hydroelectric power generation.
Labour availability
Alberta and Saskatchewan’s job markets have struggled to fully absorb new entrants, despite outperforming the rest of Canada in job creation from May 2023 to May 2024.
Continued skills mismatches between available jobs and job seekers, with employers on the Prairies struggling to attract people with the right skills to the right place at the right time.
