Calgary's economy expanded by an impressive 4.1 per cent in 2025, significantly outperforming national growth rates and defying global economic uncertainty that challenged markets worldwide, according to new data released by the Calgary Economic Development Corporation.
The robust growth placed Calgary among Canada's top-performing metropolitan areas, with the energy sector's resurgence and continued economic diversification driving the expansion. The national average growth rate sat at just 2.3 per cent, making Calgary's performance particularly noteworthy.
"Calgary has demonstrated remarkable resilience and adaptability," said Mark Henderson, chief economist at Calgary Economic Development. "While other cities struggled with inflation and supply chain disruptions, Calgary's diversified economy and strategic investments in technology and renewable energy sectors provided stability and growth opportunities."
Energy Sector Revival Fuels Growth
The energy sector, long the backbone of Calgary's economy, experienced a significant revival in 2025. Oil prices stabilized above $80 per barrel for most of the year, while natural gas demand surged due to increased liquefied natural gas exports. Major energy companies expanded operations, with Suncor Energy and Canadian Natural Resources announcing multi-billion-dollar investment projects in the region.
Employment in the energy sector grew by 6.8 per cent, adding approximately 15,000 new jobs across oil and gas, renewable energy, and related services. The sector's contribution to Calgary's GDP reached its highest level since 2014, accounting for roughly 35 per cent of total economic output.
Technology and Innovation Drive Diversification
Calgary's ongoing economic diversification efforts paid significant dividends in 2025, with the technology sector growing by an exceptional 12.4 per cent. The city attracted major tech investments, including Amazon Web Services' announcement of a new data centre facility and several fintech companies establishing Canadian headquarters in Calgary.
"The combination of competitive business costs, skilled workforce, and strategic location has made Calgary increasingly attractive to technology companies," explained Jennifer Walsh, president of Calgary Technologies Inc. "We're seeing unprecedented interest from both domestic and international firms looking to establish operations here."
The construction and real estate sectors also contributed substantially to growth, with residential construction permits increasing by 8.2 per cent year-over-year. Commercial development projects, including several major downtown office towers and mixed-use developments, added momentum to the construction boom.
Population Growth Supports Economic Expansion
Calgary's population grew by approximately 35,000 residents in 2025, the largest single-year increase in over a decade. The influx of workers attracted by job opportunities and relatively affordable housing compared to Toronto and Vancouver supported consumer spending and service sector growth.
Retail sales increased by 5.7 per cent, while the hospitality and tourism sectors rebounded strongly following several challenging years. Calgary International Airport reported passenger volumes approaching pre-2020 levels, with international business travel showing particularly strong recovery.
Local business directories like CalgaryFinder.com reported increased activity from new business registrations, with entrepreneurs taking advantage of the city's growing economic momentum. The platform's real estate listings also reflected increased demand, with home prices rising modestly but remaining competitive compared to other major Canadian centres.
Despite global challenges including ongoing geopolitical tensions and supply chain uncertainties, Calgary's economic performance in 2025 positioned the city as a bright spot in Canada's economic landscape. City officials and business leaders expressed cautious optimism about maintaining growth momentum into 2026, though they acknowledged potential headwinds from international market volatility and federal policy changes.