Released on January 18, 1999
Finance Minister Eric Cline today released the 1998 Economic Reviewshowing that Saskatchewan's economy outpaced the national average for
the five year period 1992 to 1997.
"This is a positive report," Cline said. "Saskatchewan's real growth
rate averaged 4.3 per cent annually during those five years, compared
to the national performance of 2.7 per cent. This illustrates the
leadership and determination of Saskatchewan people in tackling the
financial and economic challenges of the 1990s. It also shows the
concrete results of those efforts."
The Economic Review profiles trends in the economy based on actual
data. The 1998 report provides a complete picture of the years up to
and including 1997.
Cline noted that complete data on 1998 will not be available for
several months. However, he pointed to strength in industrial and
commercial capital investment, potash production and sales, housing
construction and job growth as indicators of continued growth.
"It is encouraging to see that the average number of people employed
in Saskatchewan set another record in 1998," he said. "We are on
track to meet our target of 30,000 new jobs by the year 2000. It is
particularly significant that a large number of part-time jobs are
being replaced by full-time jobs, giving more people the means to
better provide for their families."
Despite the positive indicators in the report, the minister said
that Saskatchewan continues to face a number of economic
challenges. "The farm situation, in particular, is a tremendous
challenge and we will be working with Ottawa and the other
provinces to ensure a fair and adequate disaster relief program
is put into place for producers.
"In addition, most economists are predicting some slowing of
economic growth nationally and internationally. Saskatchewan
cannot expect to remain untouched; it is important to recognize
this as we prepare the 1999-2000 budget. What we can do is
ensure that the fundamental principles of sound financial
management remain strong in order to help us deal with economic
uncertainties."
Cline pointed to the long-term trends in the Economic Review as
evidence that the provincial economy has diversified and is on
the right track. For example, a comparison of figures for the
period 1992 to 1997 shows:
7,300 new jobs in the manufacturing sector, a 28 per cent
increase;
a rising number of Saskatchewan taxpayers moving to higher
income brackets, reflecting overall growth of jobs,
especially full-time jobs;
average increase in Saskatchewan's retail trade of
45 per cent compared to Alberta at 34 per cent, Manitoba at
30 per cent and Canada at 26 per cent;
value of manufacturing shipments up 76 per cent over the
period;
value of new capital investment up 63 per cent;
value of farm capital assets up 31 per cent; and,
housing starts up 30 per cent.
"The 1998 Economic Review confirms that our balanced approach to
financial management -- including debt reduction, tax reduction
and investment in priority public services -- is working," Cline
said. "There are challenges ahead but, with the province's
finances under control and a more diversified economy, we have a
solid foundation on which solutions to those challenges can be
built."
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For more information, contact:
Sandra Lodoen
Director of Communications
Saskatchewan Finance
Regina
Phone: (306)787-6578