The Bank of Montreal Capital Markets expects Saskatchewan to be the only Canadian market to post economic growth in 2009.
"Real GDP will likely expand 0.4 per cent this year, the only province in Canada to see growth," said Robert Kavcic, an economist with BMO Capital Markets. "This will be followed by a 1.9 per cent expansion in 2010."
Saskatchewan's diverse commodities mix has helped it weather the economic downturn, the bank said in its report. Potash demand, however, was down 55 per cent in the first quarter, but the energy sector continued to do well thanks to relative cost advantages over Alberta.
Kavcic said Saskatchewan's most important commodity during the past two years has been people, with the province netting more than 13,000 interprovincial migrants since the start of 2007.
He said Saskatchewan is the only province yet to see job losses this recession.
Saskatoon Star Phoenix