The Conference Board of Canada predicts this drop will cause Alberta to slip into a recession by the end of the year. Jeff Rubin, the author of “The End of Growth” and former chief economist of CIBC World Markets believes the dip in the sector could affect Saskatchewan as well, though not as seriously.
“I don’t expect Saskatchewan or Newfoundland to be as adversely affected as Alberta,” Rubin said.
“But it’s going to impact the economy, it’s going to impact tax revenues. Governments are going to be challenged in the sense that if they don’t challenge spending, they’ll see their deficits go off side.”
It could also affect property prices.
The Conference Board of Canada predicts that Alberta will slip into a recession before the end of the year. Rubin echoes that warning. He said Alberta could experience its worst recession since the late 1980s.
At the end of the day, Saskatchewan will be okay because we have what the world needs. It may not be as great as it was in 2009 but we will be okay. That being said, we are so reliant on commodity prices that these kind of dips are going to impact us forever with no way out. In that way the new Saskatchewan under Brad Wall isn’t a lot different than the old Saskatchewan under Grant Devine or Roy Romanow. Like the rest of the world, the global economy will always have a big impact on us for good or for bad.
Cam Broten has said before that he wants more eggs in more baskets. I think we all do in Saskatchewan but man is it hard to do. I posted before about Alberta’s struggles in diversifying their economy and the same thing has happened here. I agree with diversification but we are a province of a million people and there are going to be times that the world economy conspires against us and makes it really hard. This is one of those times.