Here’s a slightly different take on where the Saskatchewan economy is headed.
The economics unit at National Bank has plotted a different course for us in the next 18 months with a call for our economy to contract next year.
The Quebec-based bank had us at the top of the provincial list last year and just a tick off the number one spot this year, running neck and neck with Alberta.
But next year it sees Western Canada in retreat with Saskatchewan, Alberta and BC all posting negative growth or contraction of two-tenths of a point next year. They put Manitoba at zero growth. Only Newfoundland and Labrador was also shown as posting red ink.
They say that will result in the entire country posting a no-growth scenario next year with the GDP expected to remain unchanged for 2024.
Higher interest rates are cited as the primary contributor. By raising the cost of borrowing, the central bank has achieved its goal of slowing the economy. Although it may have taken longer than expected, it is now clearly becoming evident.
