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September 2010 Prairie Economic Fundamentals

Ally

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News Articles for September 2010
 

Ally

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Potash boom fueling job, GDP growth

A booming potash industry is propelling an expected 6.3 per cent economic growth in Saskatchewan for 2010 — the strongest in the country, a report from the Royal Bank says.

The projected gross domestic product increase is also a lot higher than the 3.8 per cent RBC Economics had projected earlier this year.

"Potash production skyrocketed by 130 per cent in the first five months of the year, which is expected to make up for weakness in the oil and natural gas production sectors," the report released Friday said.

The Saskatchewan projection would have been higher than 6.3 per cent were it not for the weak agriculture sector, which has been hurt by wet weather, the report said.

The RBC provincial outlook came out the same day there was some other good economic news from Statistics Canada.

Read the full article here.
 

Ally

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Saskatchewan to lead Canada in economic growth in 2010: RBC forecast

REGINA — Saskatchewan is set to lead the country with an economic growth rate of 6.3 per cent in 2010 — led by a huge increase in potash production, according to Canada`s largest bank.

"It`s pretty upbeat, " said Paul Ferley, the Royal Bank of Canada`s assistant chief economist in an interview on Friday, adding that it`s important to view these figures in the context of what happened in 2009, when potash prices and, especially, production, took "a fairly significant drop."

Now, the economic indications are that "it`s reversing and it`s reversing quite strongly," Ferley said.

"There`s a good chance that we`ll see a good bounce in growth in the province this year."

The RBC`s 6.3-per-cent prediction is all the more impressive in light of what it predicted for Saskatchewan back early this summer. Its June forecast called for only a 3.8-per-cent growth in real gross domestic product (GDP) this year, following a 5.4-per-cent contraction last year that also was linked to changes in potash production and price.

Potash production skyrocketed by 130 per cent in the first five months of the year, which is expected to make up for weakness in the oil and natural gas production sectors, said the RBC Economics provincial outlook released Friday.

Read the full article here.
 
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