In the world of business and even more so in the political realm, the adage of under promise and over deliver is always a winner. Promise something and then exceed expectations.
When the provincial government tabled its budget in the spring we were already into the early stages of SaskBoom 2.0 and the prospect of the government exceeding its forecasts was a pretty easy bet. Now we have one of the major banks offering the same suggestion.
CIBC’s provincial economic forecast is highlighted with the idea that provinces such as Saskatchewan and BC, ones which had strong fiscal positions compared to the rest of the nation, relied on conservative forecasts on the revenue side in particular. The bank expects the provincial treasury will do better and the timeline for a return to balanced books is closer than outlined in the budget, something that would mesh well with the next election cycle.
And it is projecting growth of 5.6 percent this year with a further four-point expansion in 2022.
Source: https://economics.cibccm.com/cds?id=d25059dc-5b66-4a39-b1d2-83c3696a6c28&flag=E
