Deloitte Canada remains optimistic about Saskatchewan’s economic outlook in 2024, with chief economist Dawn Desjardins believing that the country will avoid a recession. While the economy is growing slowly, the first quarter seems to have exceeded expectations. Consumers are facing high net-service costs, leading them to pull back on spending. The outlook for business investment at the end of 2023 was weak, but there is hope for improvement in the coming years.
Real GDP growth is expected to be around one percent for 2024, with Saskatchewan slightly above at 1.4 percent. Deloitte Canada forecasts an increase in the following years, with the province predicted to have 3.1 percent real GDP growth in 2025 and 3.6 percent in 2026. Desjardins mentions that the first six months may see slow growth, but an improvement is expected later in the year. Saskatchewan’s economy is benefiting from increased business investment in potash and uranium, which will help boost economic growth.
Desjardins highlights the increased population growth and low unemployment rate as factors contributing to Saskatchewan’s economy. While agricultural production is expected to rise this year, the impact of drought conditions could affect output. Despite this, Saskatchewan is faring well compared to other provinces, tied for second place with Alberta. The provincial budget announcement in March stated that revenue in Saskatchewan is expected to increase by 0.9 percent, with the province set to reach a population of 1.25 million later in the year. Oil prices are anticipated to be slightly lower than previous forecasts, with potash pricing also expected to decline.
Overall, Saskatchewan’s economy is expected to see slow growth in the first half of 2024, with improvements predicted later in the year. Deloitte Canada forecasts real GDP growth of 1.4 percent for Saskatchewan in 2024, with even higher growth rates expected in the years to come. Increased business investment in potash and uranium is expected to drive economic growth in the province. Factors such as population growth and low unemployment rate are also contributing to Saskatchewan’s economic stability.
Despite facing challenges like potential drought conditions affecting agricultural production, Saskatchewan is performing relatively well compared to other provinces, ranking second alongside Alberta. The provincial budget announcement in March forecasted a 0.9 percent increase in revenue for Saskatchewan, with a projected population of 1.25 million by year’s end. Oil and potash prices are expected to see slight decreases from previous forecasts, but overall, the province’s economy is poised for growth and stability in the coming years. Deloitte Canada’s optimism in Saskatchewan’s economic outlook indicates positive prospects for the province in the foreseeable future.
