Released on September 17, 2024
Province’s Low Cost of Living Spurring Economic Growth
Today’s Consumer Price Index (CPI) numbers show that Saskatchewan saw an increase of only 1.1 per cent for August 2024 compared to August 2023. This is the lowest year-over-year inflation increase among the provinces, well below the national average of 2.0 per cent.
The CPI measures changes in the price of goods and services over time. Inflation is indicated by the growth of CPI, which helps assess changes to the cost of living. An individuals ability to buy goods and services is affected by changes in income and prices.
Last week, Statistics Canada building permit figures showed Saskatchewan ranked second in the nation for both year-over-year and month-over-month growth, increasing in value by 47.5 per cent and 49.2 per cent, respectively. The provinces’ two biggest cities saw substantial year-over-year increases of 64.6 per cent in Regina and 131.4 per cent in Saskatoon. The total value of building permits represents the dollar value of construction permits for residential and non-residential buildings.
The Government of Saskatchewan continues to foster an environment where low unemployment rates, utility rates and a range of income and affordable housing programs keep the cost of living among the lowest in the nation. This paired with the government’s refusal to collect the federal carbon tax on natural gas home heating is keeping inflation rates the lowest in the country, making Saskatchewan one of the best places to live, work and raise a family.
“Saskatchewan remains the most affordable place in Canada to live, work and raise a family,” Trade and Export Development Minister Jeremy Harrison said. “The actions our government has put in place to keep life affordable are working, as we are seeing unprecedented growth in key economic indicators all while keeping Saskatchewan’s unemployment and rate of inflation the lowest in Canada. We will always stand up against policies that hurt our province and protect and promote the interests of Saskatchewan people.”
In addition to the provinces low inflation rate, Saskatchewan has among the lowest personal taxes in the country. Since 2007, provincial personal income tax exemptions have removed 112,000 people from the province’s income tax roll. A Saskatchewan family of four pays no provincial tax on their first $59,475 of income – the highest tax-free threshold in Canada.
“Keeping life affordable for Saskatchewan residents plays a pivotal role in building a strong economy and vibrant communities,” Deputy Premier and Finance Minister Donna Harpauer said. “This is why more than $2 billion in targeted affordability measures are built into each and every budget.”
Affordability measures for home ownership include the Secondary Suite Incentive (SSI) and the extension to the Provincial Sales Tax (PST) Rebate for New Home Construction. The SSI provides 35 per cent of the total price to construct a new secondary suite at an owner's primary residence. The PST Rebate program provides a rebate of up to 42 per cent of the PST paid on the purchase of a newly constructed home and the extension applies retroactively to April 1, 2023. When combined, these programs will provide qualifying homeowners with up to $46,340 in cost savings.
Saskatchewan’s Crown sector continues to deliver the affordable and reliable services that residents, businesses and communities rely on to grow and thrive. While balancing infrastructure needs of our growing economy, Saskatchewan’s Crown corporations have worked hard to find operational efficiencies and manage rates. Through these efforts, the sector has achieved one of the most affordable utility bundles in Canada for Saskatchewan people.
“Our government is proud to see Saskatchewan families benefit from the second lowest cost utility bundle among all provinces in 2023-24,” Crown Investments Corporation Minister Dustin Duncan said. “According to the most recent forecast, Saskatchewan’s utility bundle is about $2,300 more affordable than the average provincial cost of about $9,200. SGI’s basic auto insurance rates remain among the lowest in the nation—a key factor contributing to Saskatchewan’s overall affordable utility costs. Beyond their core operations, our Crowns look for innovative ways to help Saskatchewan families reduce their utility bills. SaskPower and SaskEnergy offer a variety of energy-efficiency rebates and programs, SGI offers the Safe Driver Recognition program, and SaskTel offers plans, packages, promotions and incentives as affordable options for Saskatchewan families to stay connected.”
The province continues to grow at rates not seen in more than a century, demonstrating how many people are choosing to build a life in Saskatchewan. A strong and growing labour force enables Saskatchewan to meet its Growth Plan goals of growing the population to 1.4 million and adding nearly 100,000 new jobs by 2030. Since 2007, Saskatchewan’s population has increased by 23 per cent to a total of 1.23 million people and nearly 100,000 new jobs have been created.
Statistics Canada data also indicates that Saskatchewan's 2023 real GDP reached an all-time high of $77.9 billion, increasing by $1.2 billion, or 1.6 per cent. This places Saskatchewan second in the nation for real GDP growth, and above the national average of 1.2 per cent.
Additionally, private capital investment is projected to reach $14.2 billion in 2024, an increase of 14.4 per cent over 2023. This is the highest anticipated percentage increase in Canada.
All of this and more shows the Government of Saskatchewan’s commitment to promote and protect the province’s interests on a provincial, national, and international level, ensuring Saskatchewan’s voice is heard when it matters most.
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