BMO: Saskatchewan to Remain Canada’s Hottest Economy
Kavcic, R 2009, Provincial Monitor An Update on Provincial Economic and Fiscal Matters, BMO Capital Markets Economic Research, www.bmonesbittburns.com/econmics
Here is an excerpt from the Bank of Montreal’s Capital Markets Provincial Monitor:
“Saskatchewan’s economy continues to forge ahead despite a pronounced slowdown across the country. A diverse commodity mix, fiscal stimulus and renewed population growth likely kept real GDP growth at a healthy 3.0% in 2008, before cooling to 1.0% this year—still the strongest in Canada.
While the commodity boom has fizzled in recent months, Saskatchewan’s diversified resource mix is helping to buffer the downturn. Crop output had a solid year in 2008, while exploration and drilling activity in the province continue to benefit from a relative cost advantage over neighbouring Alberta.
Saskatchewan’s hottest commodity is people, with the province netting more than 6,000 interprovincial migrants in the latest 4 quarters, and population growth above 2% y/y for the first time since the 1970s. This has helped boost retail sales a nation-leading 13% y/y through October, with even more robust activity in the wholesale sector.”
Saskatchewan’s projected 1% GDP growth will be the strongest in Canada, and will be a full 2.3% higher than the projected National GDP of -1.3%. This is just another example of why Saskatchewan will be the best place in Canada to be living during this economic downturn. You can read the report in its entirety here: http://www.bmonesbittburns.com/economics/monitor/2009h1/monitor.pdf