A new report from the Conference Board of Canada says Saskatoon will lead Canada in economic growth in 2011 and each year after that until 2015.
The report says Saskatoon’s real GDP will expand by 4.1 per cent in 2011, outpacing the 2.0 per cent growth expected in Canada. The growth in Saskatoon will be led by strong resource development in Saskatchewan and significant construction plans in the city.
From 2012-2014, the Board says real GDP will grow 4.2 per cent, tops in the country, and Saskatoon will have led Canada over the 10 year period from 2006-2015 with 3.6 per cent growth.
There was some job erosion in Saskatoon in 2010, with unemployment reaching a six-year high of 5.4 percent. Employment should rise 1.2 per cent in 2011 but the unemployment rate will remain high at 5.3 per cent before dropping yearly until reaching 4.4 per cent in 2015.
Housing starts are expected to remain strong, with an average of 2,500 new homes being built each year for the next two years. The demand for housing is keeping prices high, with an average resale price of $278,895 in 2009.
For apartment dwellers, vacancy rates have rebounded to 2.1 per cent after hitting historical lows a couple of years ago. The average monthly rent for a two-bedroom apartment in the city was $923 in 2010.
Overall, construction in Saskatoon will increase 5.6 per cent in 2011, advancing to 6.9 per cent in 2012 before falling back to 5.9 per cent in 2013.
Projects currently under development include the $200-million River Landing complex backed by Karim Nasser, the new $60-million Art Gallery of Saskatchewan and a $30-million bridge to replace the Traffic Bridge.
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