Released on December 14, 2009
BMO and RBC have updated provincial forecasts and Saskatchewan is poised to lead the nation in economic growth in 2010, and be either first or second in 2011.
The RBC report confirms last week's report by the BMO that says in 2010, Saskatchewan will record the best Gross Domestic Product (GDP) growth rate in Canada. RBC predicts in 2010 Saskatchewan's GDP will be up by 3.9 per cent while the BMO predicts 3.3 per cent growth. In 2011, RBC ranks Saskatchewan first in Canada for economic growth at 4.6 per cent. BMO forecasts 3.9 per cent in 2011, third best in the nation, behind Alberta and British Columbia which will each grow by 4.3 per cent and 4.1 per cent respectively.
"Strong forecasts in 2010 and 2011 by two of Canada's major banks is certainly positive news as we head into the remaining weeks of this year," Enterprise Saskatchewan Minister Ken Cheveldayoff said. "Other indicators in the bank forecasts including job creation and retail sales all appear to be edging upward, and will contribute to our economic recovery."
Both forecasts are calling for a drop in GDP for 2009. BMO predicts a drop of 2.0 per cent in 2009, sixth best amongst the provinces while RBC has forecast a decline of 1.6 per cent, fifth in the nation (tied with Quebec).
"Prices and demand for potash and for oil and gas were off this year," Cheveldayoff said. "The good news is, the global economy is beginning to recover and these forecasts predict a turn-around in the resource sector for 2010."
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For more information, contact:
Deb Young
Enterprise Saskatchewan
Regina
Phone: 306-798-0503
Email: Deb.Young@enterprisesask.ca