Saskatchewan is expected to emerge from recession this year, according to a new report that predicts the province’s economy will grow 2.5 per cent in 2017.
Alberta is expected to see the fastest growth, with GDP forecast to increase by 3.3 per cent, the Conference Board of Canada said in its spring provincial outlook.
The second-fastest growth is projected in Saskatchewan and B.C., with both economies expected to grow 2.5 per cent.
“The difficulties in the resources sector are slowly dissipating and helping Alberta and Saskatchewan emerge out of recession. However, the turnaround is still in its early stages and a full recovery will take time,” the Conference Board’s Marie-Christine Bernard said in a news release Monday.
“Economic prospects are also improving across the country, but continued weakness in business investment—both in and out of the resources sector—could hurt economic growth in all provinces down the road.”
The Conference Board says Saskatchewan’s economy is on a more solid foundation than it was one year ago.
“The energy outlook is more positive as drilling bounced back last winter and oil production is expected to increase at a good pace over the near term,” the Conference Board said.
“As well, adaptation to the low-oil-price environment has led to growing investment into cost-effective thermal extraction technology, which will provide a significant boost to construction over the next three years.”
The province’s labour markets are also starting to turn around, boosting growth in household spending.
With the exception of Newfoundland and Labrador, all provinces are expected to see their economy expand this year.
