Sask. the ‘place to be’

12 Apr 2013
Economy to keep growing
Provinces with strong, resource-based economies, like Saskatchewan, are the “places to be” in the next three to five years, according to Warren Jestin, chief economist with Scotiabank.
“We’re finding over the next three to five years the likelihood (is) that Alberta, Saskatchewan, Newfoundland and Labrador will be the strongest provinces,’’ Jestin told the Regina & District Chamber of Commerce on Thursday.
“This has nothing to do with the cyclical rebound in the U.S. It has everything to do with the new world that is rising around us — the emerging world.’’
“New world powerhouses,” like China, India and the Latin American economies, will continue to grow at healthy rates over the short and medium term. China’s economy is expected to grow at eight per cent, India at six per cent and Latin American countries, like Brazil, at 4.5 per cent in 2013.
By contrast, debt-plagued Europe is stuck in neutral, while the U.S. and Canada will struggle to see two per cent GDP growth this year. In fact, Canada will likely trail the U.S. in economic growth for only the third time since the turn of the century, Jestin said.
In Canada, the resource based western provinces are generally performing better than Ontario, Quebec and the Maritime provinces. “Breathtaking” population growth has provided a boost to retail sales and the housing industry and bolstered real estate values in the Prairie provinces.
“While we’re talking about corrections in the housing market in Toronto and Vancouver, nobody’s talking about it in Saskatoon, or Regina, or Calgary or Edmonton, because those areas are being bolstered by very positive demographics and income growth,’’ Jestin said.
Jestin, a native Ontarian, said 12 years ago Ontario residents had incomes 10 per cent above the national average. “We’re now finding average weekly earnings higher in Newfoundland and Labrador than they are in Ontario … And it reflects what’s happening to the economic geography of our country. B.C., Alberta, Saskatchewan and Manitoba are now as big as Ontario in economic size and will continue to grow at a more rapid rate.”
But Jestin noted B.C. is “stumbling right now’’ because of its sluggish, highpriced housing market and is likely to underperform national average GDP growth in 2013.
“That puts Alberta, Saskatchewan and Newfoundland-Labrador at the top, and Ontario, Quebec. Nova Scotia, P.E.I., and New Brunswick in a lower-growth profile.”
While Canada remains one of the best countries in the world to live, Jestin added: “There’s no better place in Canada to live than right here right now.”

via Prosperity Saskatchewan

One comment

  • “We’re finding over the next three to five years the likelihood (is) that Alberta, Saskatchewan, Newfoundland and Labrador will be the strongest provinces,”. Once Saskatchewan was a have not province, but now helps to drive the Canadian Economy.

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