Saskatchewan economy rebounded in 2017: SREDA

Saskatchewan’s economy is on the rebound, according to a new report from the Saskatchewan Regional Economic Development Association (SREDA).

The province’s economy grew 2.9 per cent in 2017, which ranked fifth among the provinces behind Alberta (4.9 per cent), B.C. (3.9 per cent), P.E.I. (3.2 per cent) and Quebec (3.1 per cent).

The growth follows a 0.4 per cent decline in 2016.

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According to SREDA, the rebound can largely be attributed to the goods producing sector. Mining, quarrying and oil & gas extraction rose 7.8 per cent, due to higher oil prices and an increase in support activities; stronger export demand also contributed to an increase in potash mining.

Manufacturing also rose 7.8 per cent, the highest its been in over a decade.

Meanwhile, the province’s agriculture sector dropped two per cent due to lower output from wheat and other specialty crops.

2017 was the third consecutive year construction saw declines in activity, falling 3.2 per cent.  The report says a slowdown in the housing market and completion of major projects were the catalysts behind the slump.

On the service producing side, wholesale trade and transportation saw jumps thanks to increases on the goods producing side of things. Retail trade also increased 0.4 per cent.

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Nationally, real GDP increased 3.3 per cent in 2017; the strongest year of growth since 2011.

According to SREDA’s Consensus forecast, Saskatchewan is expected to see growth of two per cent in 2018 followed by a 1.9 per cent bump in 2019.

The report shows this year’s growth is expected to be led by expansion in export heavy manufacturing, further rebounds in the oil & gas and agriculture sectors, as well as higher demand for grains, pulses and oilseeds.