Saskatoon Real GDP
The city’s GDP fell 1.2% in 2019 and is expected to retreat a further 4.9% this year as a result of the covid-19 pandemic and weak commodity prices. This reduction includes a drop of 6.7% in this year’s second quarter and a bounce-back of 2.2% in the third. Vastly better GDP growth of 5.2% is predicted for 2021.
Saskatoon Housing Starts
The Saskatoon housing market had been tepid before the current downturn. Housing starts fell to a 14-year low in 2019 and the resale market favoured buyers. Still, falling inventories of unsold new homes, low interest rates, and supportive federal programs are expected to ultimately boost residential markets and produce a modest increase in housing starts this year and in 2021.
Saskatoon Retail Sales
The retail sector, which was already struggling against competition from online shopping, has suffered major damage from the pandemic. Saskatoon’s retail sales, flat in 2019, are expected to fall by 4% in 2020 before recovering in 2021.
Source: The Conference Board of Canada. Major City Insights – Saskatoon, May 12, 2020. https://www.conferenceboard.ca/focus-areas/canadian-economics/major-city-insights/saskatoon
First published in the September 2020 edition of The Business Advisor.