Alberta claims the top spot for economic freedom in Canada

In a recently published report by the Fraser Institute, Alberta has been recognized as the Canadian province with the highest level of economic freedom as of December 5, 2024. The report, titled Economic Freedom of North America, evaluated provinces and states based on factors such as government spending, taxation, regulations, and labor market restrictions, utilizing data from 2022. Alberta scored 8.1 out of 10, placing it in a tie for 12th position among North American jurisdictions alongside several U.S. states, including Tennessee and Texas. This ranking is significant as it marks Alberta's return to the top tier of economic freedom for the first time since 2016, when it fell out of the top 20. Previously, Alberta maintained a consistent presence among the top-ranking provinces for seven consecutive years. Key competitors in Canada include British Columbia, which ranked 43rd, and Ontario at 47th, highlighting a discrepancy in economic freedom levels across provinces. The report indicates a general decline in economic freedom among other Canadian provinces, many of which sit in the lower half of the ranking. Among these, the Atlantic provinces perform the worst, with New Brunswick, Prince Edward Island, Nova Scotia, and Newfoundland and Labrador occupying the last four spots. The study points towards high taxation, government spending, and stringent regulations as contributing factors to the reduced economic freedom experienced in these regions. Additionally, it emphasizes that economic freedom is vital for prosperity, linking it with improved income, health, and overall well-being for residents. The Fraser Institute emphasized that varying levels of economic freedom can directly influence individual prosperity and community development. Notably, jurisdictions with higher economic freedom witness significant increases in income while those with restrictive policies experience declines. The findings of the report reflect a longer-term trend of economic performance directly correlated with the level of governmental restrictions imposed on individuals' economic decisions, suggesting that maintaining or enhancing economic freedom is crucial for future growth in Alberta and other provinces.