Economy - ZEN Portfolios


Dec 5, 2012 (5 years and 7 months ago)



Primary industries include agriculture (
), and cattle and sheep
ranching. Also, natural resources such as
oil sands

Fort McMurray
, Alberta
) and other forms of
oil production can be found on the plains. Secondary industries consist of the refinement of oils
and agriculture processing.

Saskatchewan Economy


From coffee row to the halls of the Legislative Building, the ec
onomy is a matter of great
discussion in Saskatchewan. The economy affects people’s daily lives, their incomes, their
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Overview of the Saskatchewan Economy

Jim Marshall, Chief Economist at SIPP.

Economic data are sometimes difficult to fathom on their own and the placement of
Saskatchewan’s performance within international, national an
illustrate the strengths and weaknesses within the province’s economy. This report provides
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Quick facts from this report:

The Canadian economy has outperformed many other developed countries over the past five
years. Canada’s average growth rat
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In some areas, the Saskatchewan economy has done very well as compared to the overall
Canadian economy. S
askatchewan’s output per person is higher than the national average and
personal incomes are in the top half of the country.

Total exports from the province have grown from $10.7 billion in 1990 to about $30.4 billion
in 2005. By 2005 mineral exports were

about three and one
third times the level of
agricultural exports and service exports were about 86 per cent higher than agricultural

Capital investment in the province has remained around $7.0 billion per year, reaching
another peak at just ove
r $7.4 billion in 2005. Saskatchewan’s 2005 investment level of
$7,854 per person compares quite favourably with other Canadian jurisdictions.

Overview of the Saskatchewan Economy

is the first report in the SIPP Provincial Progress
Report series. Further reports will address other conditions in Saskatchewan.


Jim Marshall

This is especially apparent when comparisons are made with other provinces within

Canada. Chart 5, be
low, compares the overall average of annual growth rates in Real

GDP from 2000 to 2005 (the last five years) for Saskatchewan with the growth rates

in the other provincial economies in the same period.

In this case, Saskatchewan’s average growth rate of 1.
8 per cent per year was far below

the national average rate of 2.6 per cent per year and the lowest in Canada. All

provincial economies experienced average growth rates between 1.8 per cent and 2.4

per cent over this 5
year period, except those of Newfound
land (4.6 per cent average),

Alberta (3.2 per cent average) and British Columbia (2.9 per cent average).

However, the picture looks considerably brighter if the bad years of 2001 and 2002 are

dropped from the comparisons. Chart 6, compares the average of a
nnual growth in

Real GDP from 2002 to 2005 (the last three years) for all the provincial economies. In

this case, the growth in the Saskatchewan economy compares more favourably with

other jurisdictions in Canada.

, S

From 2002 to 2005, the

Saskatchewan economy’s output

grew by an average of 3.5 per cent

per year in real terms.


Economic Overview

In 2010, Saskatchewan’s real Gross Domestic Product (GDP)

totalled $41.5 billion, an increase
of 4.0%

2009. Saskatchewan's real growth rate was second among the provinces in 2010.

According to Statistics Canada, a rebound in mining (which includes potash) led the recovery.
Gains in support activities for mining and oil & gas extraction and other engineerin
g construction
also added to the advance.

The mining and oil & gas extraction sector increased by 20.3%, with oil & gas extraction down
by 2.6%, non
metallic mineral mining and quarrying up by 107.9%, and support activities for
mining and oil & gas extract
ion up by 28.2%.

Agriculture, forestry, fishing and hunting declined by 19.8% in 2010 after posting growth of
20% in 2008 and 2.6% in 2009. The services
producing industries were mostly positive in 2010,
with real GDP growth of 2.5%.

Manufacturing GDP was

down by 0.7%

in 2010

and construction increased by 2.9%. The
utilities sector recorded an increase of 8.6% in 2010.

For 2011 and 2012, forecasters continue to believe that

Saskatchewan will be among the leading
provinces in real GDP growth in both years, a
s commodity prices and global demand continue to

Saskatchewan 2010 Real GDP, at Basic Prices, by Industry (Percentage of Total)

Statistics Canada (table 379
0025, last updated November 7, 2011)

April 12, 2012

Saskatchewan's merchandise

exports continue to increase, reaching $2.62 billion in February








The Alberta

The energy and ingenuity of Alberta’s people have created one of the world’s most vibrant

Their entrepreneurial spirit has been
facilitated by government policies, including:

a commitment to free enterprise

establishing one of the most competitive business tax environments in North America

building a strong infrastructure

increasing spending on research and development

reducing red


Alberta Advantages:

Blessed with an abundance of natural advantages that form the
foundation of its robust economy, Alberta has maximized these strengths by fostering a
positive business climate that:

encourages and rewards investing and locating
business in Alberta

creates new jobs

empowers Alberta businesses to successfully
compete in the global arena

diversifies the

Economic Diversity:

Alberta’s economic prosperity can be best defined in term s of
standards of living

the overall income generated by the economy. This income is available
for business re
ment, individual consumption and saving, and public spending on
essential social services. Therefore prosperity is generating more income and a higher
standard of living for Albertans

but this must be done in a sustainable basis. In 2009, the
total GDP f
or Alberta was $247.2 billion and is quite diverse as shown below. Alberta’s
GDP per capita, a standard of living measure, was more than $67,000 in 2009, 22% higher
than Saskatchewan’s GDP per capita and nearly one
half more than the Canadian average
of ju
st over $45,000 per capita GDP.

Energy is the province’s key economic driver. It is supported by other key industry sectors
such as petrochemicals, agriculture and agri
food, forestry products, industrial machinery
and metal fabrication, tourism, informa
tion and communication technology,
nanotechnology and microsystems, biotechnology and pharmaceuticals, and health
technology and services.

During the past quarter century, the three non
energy sectors that have registered the
strongest expansion are the f
inance and real estate sector, the business and commercial
services sector, and the construction sector.

Source: Statistics Canada


Alberta is a haven for investment. Continued investment over the next decade will
be driven by oilsands deve
lopment, utilities, manufacturing, and business services.

A comparative
chart illustrating investment from


2011 in the various sectors is shown here.

* Intentions

Source: Statistics Canada


Alberta exports its goods and services to cl
ose to 200 countries, with the United States
its largest trading partner. Exports from the energy sector (crude oil, natural gas and natural gas
liquids) continue to comprise the majority of sales, with an increasing volume and variety of
manufactured prod
ucts. As illustrated in the graph, Alberta's exports totaled $77.8 Billion.

* Export of services is not included in this estimate

Sources: Statistics Canada and Alberta Finance and Enterprise

The People Economy:

Over 3.7 million strong, and enterpri
sing, Albertans are the power
behind the province’s economy. Alberta boasts a vigorous, highly productive

labour force

that is
youthful and among the best educa
ted in North America.

In 2010, labour productivity in Alberta’s
business sector was higher than any other province. The total value added per worker exceeded
the Canadian average by 23 per cent.

Source: Statistics Canada

GDP at basic prices


also ranks with the world's best in terms of the quality of education. Highly conversant
with the technology of the knowledge economy, Albertans key advanced technology sectors
include clean energy, information and communications, life sciences and nanote

Note: Changes are calculated relative to the

corresponding period in the previous year. Updated: April 16, 2012