REGINA – Saskatchewan’s economic output dropped in 2015, led by declines in oil and gas prices.
Overall, the province’s gross domestic product (GDP), the monetary value of all goods and services produced in a particular region, fell by 1.4 per cent in 2015.
In 2014, GDP increased by 1.6% in Saskatchewan.
According to a Statistics Canada report, construction fell by 19 per cent in 2015, including a significant decline in oil and gas engineering construction.
Residential construction was down by 15 per cent due to a weaker demand and non-residential building construction also decreased by 2.6 per cent.
Crop production was up by 1.7 per cent but drought conditions led to a 19 per cent decline in animal production. Statistics Canada said this decrease was due to feed and water supply difficulties.
Manufacturing output dropped by 2.8 per cent. The statistics agency said losses in transportation equipment, chemicals, primary and fabricated metal products and machinery was partly offset by gains in food, wood and refined petroleum products.
Saskatchewan was not the only province to experience negative growth. Real GDP decreased in Alberta by 4.0 per cent and in Newfoundland and Labrador by 2.2 per cent.
In March, RBC lowered its growth expectations for Saskatchewan’s economy in 2016 from the 2.5 per cent projected in December 2015 to 1.2 per cent. It also forecasted a 0.8 per cent increase in GDP in 2015.
Nationally, the real GDP rose by 0.9 per cent in 2015.