There is something of a consensus starting to build around what we can expect the provincial economy to do in the next year or two.
In announcing the Bank of Canada’s interest rate decision this week, the central bank governor predicted that the recovery from the COVID-19 pandemic would be different. Unlike the recoveries that followed the dot.com bubble or the banking crisis of 10 years ago which were slow and gradual, Stephen Poloz said this one will feature a quick rebound.
He said there is pent up demand waiting to be triggered and suppliers won’t be busy trying to convince customers to buy….they will be busy filling orders.
That forecast can also be seen in a report issued by the Conference Board of Canada. They released their projections on economic growth or decline for the provinces. In Saskatchewan, like other forecasters, they are calling for a five-percentage point pullback this year. But they also see a complete reversal of that trend with a five-and-a-half point expansion next year with the recovery beginning to be evident in the back half of 2020. They also see a further three-percent improvement in 2022.