Released on April 27, 2005
The Saskatchewan economy "boomed" last year, says Statistics Canada, growing by 3.5 per cent real Gross Domestic Product.The growth of 3.5 per cent translates into a $1.1 billion boost in economic production. Nationally, real GDP grew by 2.8 per cent.
"The latest news from StatsCan is just the tip of the economic iceberg for 2004," Premier Lorne Calvert said, pointing out that Saskatchewan's value of manufacturing shipments grew by 21.9 per cent in 2004 - which is the strongest growth in Canada and more than double the national growth of 8.5 per cent.
"The good economic news just keeps pouring in for Saskatchewan. We have the third-highest real GDP growth among provinces, and we're significantly above the national average for the second year in a row. Here we have yet further validation that our Government is taking Saskatchewan in the right direction," Calvert said.
In terms of nominal GDP, Saskatchewan grew at an annual rate of 10.7 per cent last year, the strongest among provinces and higher than the national average of 6.1 per cent.
Statistics Canada's newsletter, The Daily, noted that high oil prices spurred production and exploration in Saskatchewan, and that labour productivity increased about 1.5 per cent in 2004, one of the strongest increases among the provinces.
Calvert acknowledged that oil was a major player in Saskatchewan last year, contributing in large part to the province's strong economic and financial growth. The value of crude oil sales were up 17.3 per cent from 2003, while the value of natural gas sales increased 6.1 per cent. Potash was another star performer, with the value of potash sales up 32.8 per cent. Potash production increased 11.6 per cent in 2004 – establishing a second consecutive record level of production.
"Coming out of a stellar 2004, where we saw marked improvement in the economy, and now a quarter of the way through our Centennial year, Saskatchewan's on a roll," Calvert said. "Last month, we saw our 12th straight month of job growth; in fact, the second lowest rate of unemployment in Canada. Last week, we saw our 12th credit rating upgrade since 1991, when Dominion Bond Rating Service upgraded us to A high. And now today, we learn we were leaders of the pack for economic growth for 2004."
Statistics Canada results also showed Saskatchewan led the nation in nominal GDP growth per capita, real GDP growth per capita, per capita personal income growth, growth in personal disposable income and per capita personal disposable income growth and productivity growth (which is real GDP per employment), and posted the second highest personal income growth.
Saskatchewan's strong performance is expected to continue into 2005. The Statistics Canada survey of public and private investment intentions indicates an additional 12.6 per cent growth in investment in Saskatchewan in 2005, following a 4.0 per cent increase in 2004 – the highest pace of investment growth in Canada and more than double the national average of 6.0 per cent. Saskatchewan's forecast for real GDP growth in 2005 is 3.0 per cent.
Calvert noted that Apache Canada Ltd.'s decision to invest $95 million over the next five years to recover additional oil from its Midale Unit oilfield by injecting and trapping carbon dioxide (CO2) deep inside the Earth and recently announced tax initiatives to stimulate significant expansion in Saskatchewan's potash industry are just two examples of why the future is bright for our province.
"We've been on an economic roll, and the wheels of the economy will be kicking into high gear in Saskatchewan," Calvert said.
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