Released on December 22, 2008
Premier Brad Wall said 2008 has been a remarkable year for Saskatchewan's economy. Furthermore, because of actions taken this year, our province is well-positioned to continue strong and steady growth in 2009 and beyond.
"We will not be immune from the market turmoil and since commodity prices are significantly lower, 2009 may not be as impressive as this year," Wall said. "However, it's very important for everyone to remember this - there will still be growth in Saskatchewan, and relative to the rest of the world our economic performance will be very strong."
Wall pointed to figures released in the past several days showing that Saskatchewan's economy continues to be strong and steady.
- Retail trade up 12.9 per cent (unadjusted) - the largest percentage increase among provinces;
- Exports are up more than 90 per cent compared to last October - the highest percentage increase among provinces and five times the national increase;
- Wholesale trade was up 40 per cent compared to the year previous - the largest increase in Canada;
- Manufacturing sales are up 16 per cent over the year, the second highest percentage growth rate in the country;
- All independent forecasts show Saskatchewan leading the country in economic growth in 2008. Since the beginning of October, five independent forecasters have concluded Saskatchewan will also lead the country in economic growth in 2009; and
- Saskatchewan's population grew by 15,007 from October 2007 to October 2008.
"This growth will be further cemented by infrastructure investments in the province by our government and the federal government - investments designed to further strengthen our economy while creating a short-term stimulus," Wall said. "In addition, the tax cuts, infrastructure spending and debt reduction our government announced in October will further stimulate the economy in the coming year."
According to figures prepared by Saskatchewan Finance, the measured announced in October will increase nominal Gross Domestic Product (GDP growth by 1.3 per cent in 2009 and a further 1.0 per cent in 2010.
Saskatchewan Finance said the October tax, infrastructure and debt reduction package will add nearly 19,000 new jobs in 2009 and more than 10,000 in 2010.
Further, the historic income tax reductions will inject about $600 million back into Saskatchewan taxpayers' pockets next year - $300 million when they file their 2008 tax returns and another $300 million on their 2009 taxes.
"The task ahead for our province is to continue on the course we have set, so that we can continue to have the strongest economy in Canada," Wall said. "And we have to keep reminding ourselves that it really is a different story here in Saskatchewan."
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For more information, contact:
Rosann Semchuk
Executive Council
Regina
Phone: 306-787-0980
Email: rosann.semchuk@gov.sk.ca
Cell: 306-529-1601