The strength of the agricultural sector and, by extension the possibility that farmers will spend more on fertilizer because the markets are so strong, are going to be a driving factor in Saskatchewan’s economy this year. In fact, it will be so strong that we will more than regain the losses we experienced last year because of the pandemic.
That is the thrust of the latest quarterly update on our economic outlook from the economists at RBC Royal Bank.
Now, RBC has always been the most bullish on this province’s prospects and one of the few who consistently said Saskatchewan will recapture last year’s losses.
And it expects we will end up a full percentage point ahead by year’s end, with growth of 5.2% this year compared to a 4.2% contraction in 2020.
The bank noted that farm exports began to rise last year and will go farther, faster this year. That will lead to global demand for fertilizer which is good for potash and we will also benefit from rising oil prices with more investment in drilling and production.