RBC projecting Sask. economy to rebound in 2018 and 2019
Projecting a 2.7% growth in both years due to agriculture, with help from oil and gas
CBC News Posted: Dec 12, 2017 10:30 AM CT Last Updated: Dec 12, 2017 10:30 AM CT
Rebounds in the agricultural and mining sectors along with rising investment spending will be the main factors behind the economic rebound in 2018 and 2019, according to the RBC forecast. (Courtesy Paul Dornstauder)
RBC is projecting a growth of 2.7 per cent both years, if all goes well.
The economy is expected to receive a boost from the agriculture sector, with some help from oil and gas in the strengthening energy sector.
“Our view is that rebounds in the agricultural and mining sectors along with rising investment spending will be the main factors accelerating overall GDP growth over the next two years,” the report says.
Capital spending and the construction industry may have a good year, due to improvement in the mining sector as well.
Potash, after a decline in production in 2016, has increased so far this year thanks to a strong global demand and key contracts with China and India, the report says.
In addition, the bank is forecasting employment in the province to rise by half a percentage point and the unemployment rate to remain at 5.7 per cent next year.