Edmonton's Strong Economy to Continue - April 17, 2004

Edmonton Economy Will Enjoy Strong Growth Through 2005, says EDE President

Edmonton, Alberta - April 17, 2004 - Massive resource developments in Northern Alberta and Greater Edmonton, high disposable incomes and low interest rates are all driving Greater Edmonton's robust economy, said Allan Scott, President and CEO, Economic Development Edmonton, speaking here today at a conference organized by the education-oriented Real Estate Investment Network (REIN™)

"Greater Edmonton has posted economic growth rates near or above three per cent in six of the last seven years," Scott told several hundred REIN™ members. "The Conference Board of Canada is forecasting a solid 3.5 per cent Gross Domestic Product (GDP) growth rate in 2004 and 3.4 per cent in 2005."

Oilsands investment and drilling activity are primary drivers of Edmonton's strong economic performance. Alberta Economic Development estimates that oilsands investment will average $4 billion in each of the next 10 or more years. Oil is currently trading over $35 per barrel, and expected to remain strong over the near term, generating high levels of drilling activity. 

This investment climate has generated high disposable incomes, spurring consumer confidence and buoyant retail sales. "Our high level of disposable income also attracts a steady influx of skilled migrants from other parts of Canada, which we need to support growth," said Scott.

Combined with these factors are the record low interest rates experienced by all North Americans. Low interest rates have stimulated the purchase of high-priced durable goods such as houses and cars. Housing starts in 2003 are expected to hit 12,300, second only to the record 12,800 housing starts in Greater Edmonton in 2002.

Growth risks in 2004 and beyond

In 2003, SARS and BSE were the unexpected factors that negatively impacted growth across Canada. While it's hard to predict these kinds of events, businesses should monitor several situations. In-migration, while still strong, is slowing in response to strengthening economic conditions in other parts of the country.

While the Edmonton and Alberta housing markets remain strong, many forecasters are projecting the housing market growth rate will slow at some point, bringing a slowdown in the construction industry.

Another factor to watch is the success, or lack thereof, in drilling activity. Conventional oil deposits are becoming more difficult to find. Reduced investment in conventional oil exploration would have a profound, long-term impact on the Greater Edmonton economy.

As well, extended closure of the U.S. border to live cattle would continue to negatively affect the economy and force restructuring in Alberta's beef industry.
"Our economy has proved resilient in the face of BSE and other negative economic factors in 2003. If the U.S. economy can continue growing, Greater Edmonton's economy should continue to roll in the next several years," Scott said.

Scott noted Edmonton has many positive investment factors in its favour.

"Greater Edmonton's status as one of the most globally competitive cities for overall business costs was re-affirmed by the recently released KPMG Competitive Alternatives report. But Edmonton's advantages go far beyond business costs. Our first-class education and health systems, cultural richness and plenty of recreation and entertainment options add up to a quality of life that's hard to match," he said. "So whether you're looking at starting a new business, re-locating a business or looking for an exciting region to live, work and play in, now is an ideal time to choose Edmonton." 

About REIN™
REIN™ members gather at carefully structured workshops each month - including the Saturday session Scott addressed - to learn and discuss the latest trends and strategies in residential real estate. They often tap into information sources that aren't easily accessible to the general public, giving them a distinct advantage in the marketplace.

Each monthly session offers REIN™ members:

• global, national, regional, and local economic updates and analysis;
• strategies to apply economic analysis to specific investment opportunities;
• practical skills to identify, assess, acquire and manage specific properties;
• sharing and analysis of real-life case studies and success stories;
• opportunities to develop joint-ventures with other REIN™ members.

REIN™ also offers members additional resources via a password-protected area on its Web site (www.albertarein.com). They include the opportunity to:

• ask free-of-charge questions of respected lawyers, accountants and
• other financial professionals who are on retainer to REIN™;
• download any of 60 real estate documents (property analysis forms,
• sales contracts, rental agreements, etc.) to execute real estate transactions;
• advertise to recruit joint-venture partners for prospective investments.

For an interview with REIN™ President Don R. Campbell, call 1-888-824-7346. For more information about REIN™, go to www.albertarein.com.