Saskatoon

Sask. economy expected to emerge out of recession in 2017

The Conference Board of Canada says Saskatchewan will likely help lead the country in economic growth this year.

Mining, oil sectors expected to help grow economy by 2.5 per cent

A Husky Energy employee at Bolney/Celtic Oil Battery in the Lloydminster area of Saskatchewan. (Husky Energy)

The Conference Board of Canada says Saskatchewan will likely help lead the country in economic growth this year.

A stronger mining sector, along with oil projects continuing to push ahead, means the board believes the economy will grow by 2.5 per cent in 2017, the second highest in the country.

"Saskatchewan's economy is on a more solid foundation than it was one year ago," read a release. "The energy outlook is more positive as drilling bounced back last winter and oil production is expected to increase at a good pace over the near term."

While the report noted that oil prices are not expected to greatly improve, new thermal oil projects in the Lloydminster area are expected to create more jobs.

"Adaptation to the low-price environment has led to growing investment in cost-effective thermal extraction technology," read the report. "Investment in new thermal plants will provide a significant boost to construction over the next three years."

The report also noted expansion at PotashCorp's Rocanville mine as well as the opening of the new K + S potash mine in Bethune.

The board expects Alberta's economy to increase by 3.3 per cent this year, leading the country.

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