This year’s above average harvest has prompted the economists at RBC Royal Bank to revise their forecast for Saskatchewan’s GDP growth this year.
They’ve moved their estimate to 2.7-percent, up from the earlier 2.1-percent target. That puts Saskatchewan in second place among the provinces in the RBC year-end update behind Newfoundland and Labrador and a tenth-of-a-point ahead of Alberta.
Next year, the bank sees us holding on to our second-place ranking behind Alberta with growth pegged at 2.1-percent. And the story will continue through 2027 with Alberta leading the way and Saskatchewan in second spot.
The bank’s team said tariff challenges, particularly levies imposed by China on canola, are moderating our performance. The bank says these tariffs cost the province nearly $600 million in the first three-quarters of the year and only a record setting canola crop mitigated the impact as well as diversification of our customer list which saw exports rise to countries other than China and the US.
The bank also says strong construction activity is providing a solid boost to Saskatchewan’s broader economy.
