Fueled Up and Ready

Trying to figure out where the economy might go in the next six months is no small task these days. But we do know this: prices are going up…because we’re doing well.

BDC tracking of consumers who represent a huge portion of the economy shows we’re sitting on a ton of cash after 18 months at home because COVID made it hard to go out for dinner or a concert and even harder to go on vacation.

They say all that cash being unleashed in the recovery phase could fuel significant growth but that might also trigger inflationary demons leading to higher interest rates.

If consumers are the fuel, then so are exporters. Saskatchewan always sees the $30 billion a year mark as a milestone for our exports….if we get there, then we’ve arrived. Well, we hit that mark after only 10 months this year. So, global demand is also a catalyst.

And then there’s housing. Nationally, starts are ahead of historical levels but trailing demand, another reason property values are rising and making homeowners wealthier in the process.