SASKATOON, SASKATCHEWAN – Today, the Saskatoon Regional Economic Development Authority (SREDA) released its Quarter 2 2016 Economic Update Report and Dashboard for the Saskatoon Region. The report rates the status of the local economy with a C grade, maintaining the Quarter 1 2016 rating.
“The Saskatoon Region economy continues to adjust to the moderate levels of growth seen across Canada. With energy prices rising from recent lows and growth in sectors such as non-residential construction, retail sales and agriculture, our economy is weathering the ongoing economic headwinds,” said Alex Fallon, President and CEO of SREDA. “SREDA expects GDP growth to be lower than previously forecast but to remain positive at about 1% for the year.”
The report summarizes key economic indicators, along with sector analysis and input from local business groups and industry experts.
“The seasonal activity typically associated with Q2 has been steady in most sectors, and positive in others. Notable increases in YXE airport traffic and tourism activity have been driven largely by new and unique sporting and concert events. These upticks will help to offset challenges in some sectors, such as mining, and oil and gas. Optimal growing conditions across much of the province have agricultural producers feeling positive as well,” said Keith Moen, Executive Director, North Saskatoon Business Association.
“Declining energy and commodity prices have resulted in lower manufacturing employment in the region. The pressure is on for local manufacturers to seek out efficiency gains in their operations, which will increase productivity and competitiveness in the longer-term,” said Mike Holden, Chief Economist, Canadian Manufacturers & Exporters.
“While the market is still adjusting to this year’s weaker economic conditions, Saskatoon’s new housing market remains healthy and robust. Although the year-to-date permit totals for multi-units are adjusting to reflect the market demand, the year-to-date totals for single-unit permits are similar to last year. Overall, new housing activity in Saskatoon after the second quarter is consistent with forecasts for the year,” said Chris M. Guérette, CEO, Saskatoon & Region Home Builders’ Association.
“Overall business licensing and building permits continue to surprise. Although there is slower economic activity at the moment, it does not appear that it has significantly impacted the net number of new business licenses or building permits being issued in Saskatoon,” said Alan Wallace, Director, Planning & Development, City of Saskatoon.
“Air passenger numbers rebounded to near-record volumes in Q2, providing optimism toward further economic growth in the tourism industry. Convention and event activity was also strong in the quarter. This included the impressive results from the Garth Brooks concerts, generating over $11.4 million in direct spending in the local economy,” said Todd Brandt, CEO, Tourism Saskatoon
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