Population boom hits living standards in Canada's oil province

Canada’s oil-rich province of Alberta saw its economy shrink to 2004 levels on a per-person basis as the region’s population swelled, according to economist Charles St-Arnaud.

Alberta’s gross domestic product per capita fell 2.2 per cent in 2023, the second-fastest decline out of any Canadian province, St-Arnaud, chief economist at the Alberta Central association of credit unions, said in a note to investors. The drop was driven by population growth of 4.1 per cent, well outpacing the 1.5 per cent gain in economic activity.

Rising housing costs — particularly in Toronto and Vancouver — have driven tens of thousands of Canadians to Alberta in search of cheaper real estate. While the influx has bolstered parts of the economy, it has crowded schools and driven up costs for residents.