Driven by strong growth of demand and historically high prices, Saskatchewan's resource and agricultural output — potash, uranium, oil and grain, for example — are pushing the province's economy toward unprecedented growth.

In May 2008, manufacturing sales in Saskatchewan were up by 26% year over year, more than three times the 8.0% year-over-year increase recorded by the province's western neighbour, Alberta. Saskatchewan's employment growth has also accelerated, from 0.4% year over year in January 2008 to 2.3% in June. This increase is due in large part to strong growth of resource output.

Net migration to Saskatchewan should continue to remain positive into 2010, at least, thanks to sustained job growth, rising wages and a very low rate of unemployment. When combined with strong employment growth, strong net migration should also sustain housing demand well into 2009.

However, housing demand will be constrained in the same period by the sharp deterioration in home affordability that has been brought on by the rapid escalation of both new and existing house prices over the past 18 months.

With the value of major public and private investment projects listed in the 2008 Major Projects Inventory up 65% compared to 2007 inventory levels, it is clear that investment will continue to be a major contributor to the province's overall growth over the next several years.

Across sectors, investment in oil and gas pipeline construction is projected to increase by 146% year over year, largely due to the construction of the Alberta Clipper Pipeline and the EnCana enhanced oil recovery project in Weyburn.

Investment in mining is also projected to increase +53% in 2008. This significant rise is due to expansion of the Mosaic and Cory potash mining operations and development of uranium mining projects at Cigar Lake and McLean Lake.

In summary, strong growth of resource and agricultural output — together with robust growth of both private and public investment — make it probable that Saskatchewan will lead the country in 2008 and 2009 in terms of overall economic growth.