Sask. economy projected to grow 7.9 per cent in 2022, lead the country: report

A report from the Conference Board of Canada projects Saskatchewan will lead the country in economic growth in 2022.

Its outlook for the Saskatchewan economy will see GDP grow 7.9 per cent in 2022, largely driven by the energy sector and commodities.

“Saskatchewan’s economy had shrunk 0.3 per cent in 2021, almost entirely due to a devastating drought that limited output in the agricultural sector, however The Conference Board of Canada anticipates a significant recovery in 2022 with GDP volumes to grow 7.9 per cent. Although agricultural yields will be below average, soaring wheat prices have led to an increase in seeded area on farms” says a news release.

The Conference Board projects Alberta to be second in economic growth this year at 6.6 per cent.

“The oil and gas sector is anticipated to play a major role in the province’s growth, however, there are mitigating factors that could constrain its potential. Alberta is also set to see major investment in petrochemical manufacturing, with construction of three major facilities set to begin over the next two years."

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Ted Mallett, Director, Economic Forecasting with the Conference Board of Canada says consumer spending growth will start to slow down as rising interest rates impact borrowers. But high employment will keep Canada’s economy moving forward.

“Trade disruptions brought by the Russian invasion of Ukraine and COVID’s resurgence in China has sent prices soaring, creating a domino effect on consumer inflation,” Mallett said in the release.