The provincial economy is expected to grow a bit faster than many had expected, according to the latest update from RBC Royal Bank. The bank issued its quarterly provincial outlook report a few days ago suggesting growth of 1.6 per cent this year and 1.9 in 2016.
These numbers are a long way from the ones we saw a couple years ago when we had a bumper crop that generated an unusually strong performance. However, they are not as bad as they might sound. A new report from one of the global agencies has reduced Canada’s national growth target this year to 1.5 percent, just slightly less than RBC is forecasting for Saskatchewan. That helps us assess things here at home as we are generally considered one of the laggards in Canada but now we have two agencies reversing that notion.
RBC says potash has exceeded expectations, offsetting some of the declines in oil and their report is based on a return to more normal growing conditions for agriculture but, given the moisture situation, that is impossible to predict.