Saskatoon economy to grow faster than other Canadian cities

Saskatoon’s economy is expected to expand faster than other cities in the country this year, according to a report by The Conference Board of Canada.

GDP for the city is expected to increase by three per cent this year and 2.9 per cent in 2024, the report said.

“Despite the slower growth in economic activity this year, the city’s anticipated growth will be higher than that of most other cities in Canada,” it said.

Growing demand for the province’s natural resources will benefit the city. However, it won’t be enough to prevent a drop in retail sales, the Board said. The organization has predicted a 2.4 per cent drop for this year.

“Still, the decline in retail and wholesale trade will be less than in many other cities in Canada due to the relative strength of Saskatchewan’s economy,” the report said.

The main reason for the decline, according to the Board, is a reduction in household income.

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Inflation is expected to slow to 3.7 per cent, down from 6.2 per cent. Consumer prices are expected to go up by about two per cent, the report said.

Saskatoon’s population is expected to grow by 2.6 per cent this year, up from 2.3 per cent in 2022.

SASKATOON REAL ESTATE

The Conference Board of Canada said that home prices could increase by about three per cent this year.

“Fewer than 1,000 homes were listed for sale in Saskatoon in January. The shortage is especially acute for homes priced under $500,000,” the report said.

Construction of new homes will take a hit, according to the Board.

Housing starts are predicted to fall by about six per cent. However, that is still lower than the 10 per cent forecast nationally.

EMPLOYMENT

Some sectors in Saskatoon will see a solid gain in employment this year, including restaurants, bars, hotels, motels and those in amusement and recreation. The Board has predicted a five per cent increase in these industries for 2023.

“Owners of these outlets have had to ramp up hiring because households in Saskatoon are purchasing more services, which were off limits at the height of the pandemic, instead of durable goods,” the report said.

However, finding enough employees may prove a challenge for companies in these areas, according to the report.

“Many workers in these outlets decided to either retire or pursue other careers as pandemic-related public health restrictions dragged on,”

The Board said that higher immigration could help overcome the labour shortages, something that the province will focus on with its Immigrant Nominee Program.