The Saskatoon economy continues to perform well despite rising inflation and interest rates, and with continued growth seen within key sectors in the SK economy, SREDA is upgrading Saskatoon’s economic rating to a B+ for Q1 2022.
We’ve summarized the lay of the economic land for our Q1 snapshot:
- The latest inflation numbers in Saskatoon show it rising to a record 5.6%, compared to 5.7% and 6.7% for Saskatchewan and Canada, respectively.
- The labour market has proven to be exceptionally robust. The unemployment rate is now at 4.6%, approaching levels seen before the 2008 Financial Crisis and the 2014 Oil Crash.
- A tightening labour market points to a supply and demand imbalance as more employment opportunities become available while competition for skilled workers continues to ramp up.
- Assumed better weather conditions for the year is pointing to an improved outlook for the agriculture sector, supporting higher crop volumes. Additionally, commodity prices for crops and fertilizers have spiked significantly, further improving the agriculture sector outlook.
Saskatoon’s growth forecast for 2022 has risen to 5.3%. Additionally, the growth forecast for 2023 is 4.1%, supporting our ranking of a B+, I think most of us would take that grade – could be better, could be worse….
That’s what’s on my mind, let me know your thoughts?