We’ve got the first of the quarterly economic forecasts from the major banks. We can expect the others to follow suit in the days ahead but its RBC Royal Bank that is first to release its mid-year outlook.
To put it simply, the bank says Saskatchewan’s prospects are brightening every day as the re=-opening plan moves forward.
The re-opening plan, which started last month, coupled with strong commodity prices and unexpectedly robust capital spending plans are the recipe for a sharp recovery. The bank is projecting growth of 5.7 percent this year with another 4-percent expansion in 2022. The revised growth rate more than offsets last year’s pandemic-induced contraction of 5.2%.
Strong growth in food exports which are running 15% ahead of pre-pandemic levels have resulted in farm incomes rising by 25% so far this year, a development that will generate significant cash flow in the province. Further, the energy sector is recovering with oil prices topping $60 a barrel and potash demand is increasing this year.
The growth will also trigger increased housing prices and an impressive 50% increase in housing starts.