Saskatchewan's diversified economy drives healthy economic
growth, says RBC Economics
Numerous growth factors offset weak spots
TORONTO, October 13, 2006 — Saskatchewan's
economy is expected to grow by a healthy 3.8 per cent in 2006
and 3.1 per cent in 2007, according to a provincial economic
outlook released today by RBC.
"Saskatchewan is well positioned for growth this year
and next," said Craig Wright, vice-president and chief
economist, RBC. "Saskatchewan's growth drivers are among
the most diversified ever with the province poised to post
the fourth fastest growth among the provinces this year and
next."
Saskatchewan's agricultural conditions are expected to be
better this year and next. While RBC notes that downside risks
always exist in farming, the vast majority of crops were harvested
early this year and are likely to be sold at more favourable
prices, resulting in a lift for farm cash incomes and economic
growth into next year.
According to the report, the strong energy patch remains
a positive growth factor. The province has the second largest
oil reserves in the country, which have been the target of
big ticket investments and expanded production, including
Saskatchewan's own tar sands. Even with softening oil prices
next year, energy will continue to power growth.
A new uranium mine at Cigar Lake supported by high prices,
strong global fertilizer demand for potash, and healthy ongoing
mineral exploration and appraisal activity, are further boosts
to the economy.
RBC notes that the numerous growth drivers should offset
weak spots in Saskatchewan's economy such as out-migration,
slower growth in the workforce and housing markets that are
coming off peaks on volumes and prices.
For the overall Canadian economy, RBC has revised its 2006
growth forecasts downward with Ontario being sharply downgraded
to last place among the provinces. Alberta and British Columbia
are now in first and second place respectively, bumping Newfoundland
and Labrador to third place for growth in 2006.
The RBC Economics Provincial Outlook assesses the
provinces according to economic growth, employment growth,
unemployment rates, personal income growth, retail sales,
housing starts and the Consumer Price Index.
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For more information contact:
Craig Wright, RBC Financial Group Economics,
(416) 974-7457
Derek Holt, RBC Financial Group Economics,
(416) 974-6192
Beja Rodeck, RBC Media Relations,
(416) 974-5506
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