Saskatchewan is moving into the second phase of the latest economic upswing.
Saskatchewan’s commodity-based economy tends to move in cycles that reflect the global dynamics of primary production for our foundational industries of food, fuel and fertilizer. Some observers have concluded that we tend move in 15-year horizons — seven years in ascension followed by seven years in decline with a short transition between the two.
An examination of commodity prices supports such a theory. Our current upswing started in 2021, precisely seven years after prices for both potash and oil fell off a cliff in November of 2014. In other words, we’re at the midpoint of the current up-cycle.
This is a time when commodity prices become secondary to investment. Capital outlays are now the primary force that will propel Saskatchewan’s economic growth for the next few years.
The Jansen potash mine is the biggest but we have billions destined for or already funding canola crush expansion while uranium development is expanding rapidly in a world that recently wholeheartedly embraced nuclear power development at the recent global climate conference.
