The pace of growth of the provincial economy may well be reduced as we head into the new year and even further down the road.
That’s the assessment delivered in the latest provincial economic forecast from CIBC Capital Markets. The report released this week suggests we will see the Saskatchewan economy expand by 3.9% this year. That is on the lower side of the forecasts coming from the banks.
It then goes on to say growth next year will fall back to 3.2% and then fall again to 2.7% in 2023.
The research says strong commodity prices, especially for things like oil, have provided a spark to the economies of Saskatchewan and Alberta but bulk of the gains are behind us because the oil field activity has not triggered hiring or even capital investment which would have been fuel for the growth numbers.
While the report offers no reason for the lagging investment activity, others say investors and shareholders, wary of Ottawa’s stance on oil production, lean to maximizing revenues from existing reserves than spending money to develop new ones.