There is a significant contrast among the banks on how Saskatchewan’s economy will perform in the coming year. A few days ago, for example, CIBC said 3.9% growth was what we would see next year. Then RBC Royal Bank issued their update and they pegged our 2022 growth at 5.6%.
Not only was considerably higher than the competitor’s forecast, RBC said Saskatchewan would top the list of provinces in growth next year. Then we should anticipate an expansion of a further 2.6% the following year. Interestingly, this time it is RBC that was slightly lower than CIBC’s 2023 expectation.
RBC has generally been more bullish on Saskatchewan than other forecasters and, while they are predicating next year’s outlook on a return to normal crop conditions, the other indicators they focused on include capital investment.
This one was lagging over the past five or six years but recently we have seen a flurry of announcements of new construction – things like canola crushing plants, potash development and forestry plants – sparked by resurgent commodity prices.
