SASKATOON -- Saskatchewan’s real GDP is expected to decline by five per cent this year, according to a report from the Conference Board of Canada.
But it also forecasts Saskatchewan’s real GDP will rebound by 5.4 per cent in 2021.
It says the unemployment rate in Saskatchewan is expected to reach 8.7 per cent. The industries expected to see the biggest job losses are in the arts, entertainment and recreation, accommodations and food sectors.
The report says the unemployment rate would fall to 6.7 per cent in 2021 and 6.6 per cent in 2022. It forecasts unemployment staying above six per cent at least through 2024.
“Saskatchewan will experience one of the largest declines in output this year as the negative impacts of COVID-19 are layered on top of the weakness in the province’s mining industry,” the report reads.
The report says struggles in the potash industry could also hurt Saskatchewan’s economy.
“Since the second half of last year, temporary shutdowns or production cuts were announced at four separate facilities. And, while production in the sector has not been significantly impacted by the COVID-19 outbreak, the potential exists for additional shutdowns due to slowing global demand due to the pandemic, representing a key downside risk to our outlook.”
Saskatchewan’s energy exports could also feel the pinch.
“In addition, the general gloom in the oil and gas sector, combined with Canada’s lagging pipeline capacity, will drag down Saskatchewan’s energy exports,” the report reads.
Meanwhile, employment is forecast to fall by 2.8 per cent this year and rebound next year by 2.9 per cent.
