Some of Western Canada’s farming powerhouse provinces may finally be out of their economic slump
By Jennifer Jackson
Good news for agriculture-powerhouse Western Canada; the economic recession that some of the provinces faced is officially a thing of the past, according to a new report. Researchers credit some of this strength to agriculture.
Despite a tough harvest for some of the Prairies, the Conference Board of Canada recently released its Provincial Outlook: Autumn 2016, and said that all provinces – except Newfoundland and Labrador – will see economic growth next year, according to a Canadian Newswire Dec. 8 release.
For Saskatchewan, the report predicts the province may have officially rid itself of its recent recession. The province’s economy is predicted to grow 1.2 per cent; a small but optimistic value after the 1.5 per cent economic loss in 2016, according to the release.
As for agriculture in the province?
“Saskatchewan's agriculture sector is expected to post a positive performance over the near term,” and is referred to as a “bright spot for the province,” said the release.
Marie-Christine Bernard, associate director of the provincial forecast for the Conference Board of Canada, says that although a recovery is predicted, it will be a long process.
“The economic outlook for Saskatchewan is improving but the road to recovery won't be easy,” Bernard said in the release. “The downturn in commodity markets appears to have reached bottom but no swift pick-up in prices or development of new major projects is expected over the near term."
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Heading east, Manitoba also shares a projection of growth.
The report predicts the province’s economy will grow by two per cent, following suit with 2016’s economic growth of 1.7 per cent, according to another Dec. 8 release by Canadian Newswire.
The province’s producers have had two years in a row of favourable growing conditions, aiding in the success of the province’s agriculture sector. In 2017, however, the report predicts slower growth in the sector.
Overall, “Manitoba can count itself among the top provincial performers this year and next,” says Bernard.
Alberta however, has recently experienced one of its worst economic downturns in decades, and is also predicted to see positive growth next year, largely influenced by oil.
“Alberta is finally out of recession and can expect to see real (economic) growth of 2.2 per cent in 2017,” according to the release.
This is largely due to stability in oil prices, and proposed plans to increase the marketability of Alberta’s oil, said the release. Rebuilding Fort MacMurray after 2016’s forest fires will also positively affect the province’s economy.
"It appears that the worst may be over for Alberta, but the road to recovery won't be easy,” said Bernard.
The release does not mention if Alberta agriculture is a significant factor for 2017’s growth. Rather, it focuses on the energy sector.
Farms.com has reached out to Manitoba Agriculture and Saskatchewan Agriculture for more comments on the future of the province’s agriculture sectors.
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