Paul Martin's Business Update - October 31st

Paul Martin's Business Update - October 31st

A new economic update on the state of the provincial economy shows a marked shift towards oil production.

BMO Bank of Montreal issued its fall forecast yesterday calling for the Saskatchewan economy to expand by 2.4 per cent this year and a slightly stronger 2.8 per cent next year.

This is in line with other private sector forecasters who appear to coming to a consensus that our growth is going to hover between 2.5 and 3 per cent for the next 15 months.

What is different about this report is a breakdown of the contribution various segments of the economy are making. Construction and exports are solid but oil is the big gig right now. A lot of attention has been devoted to potash in the last few years with mines expanding and new ones being started, however, oil, says this report, along with the service sector that supports its accounts for 20 per cent of the total provincial GDP. And oil royalties to the Crown now exceed potash royalties by a factor of 3 to 1.

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