Paul Martin Commentary
Saskatchewan is on track for its second consecutive year surpassing the $19 billion mark.
The latest StatsCan data shows capital expenditures on new plant and equipment as well as repair of existing assets hit $19.7 billion last year and is forecast to reach $19.5 billion this year.
Capital investment is a critical metric in measuring economic growth. It is a sign of investor confidence – people and organizations willing to make expenditures with a long-term life span – and it builds the province’s overall net worth. It also triggers employment formation – both during the construction phase and later, for the life of the asset.
To provide some context on what $19 billion in capital expenditure means, Saskatchewan has enjoyed significant investment growth in recent years with major projects such as the Jansen potash mine but the levels of investment have been steadily rising nearly 50-percent from $13 billion four years ago to $19 billion last year.
That is the largest growth number in the country, double the national pace.
