The Conference Board of Canada wrote in its latest Provincial Outlook Saskatchewan's resource sector will play a key role in the rebound in the provincial economy in 2010.
According to the research firm, Saskatchewan noted a 4.2-per-cent decline in its real GDP in 2009 as a result of the economic downturn and a drop in resource commodity demand and price.
"Fortunately, commodity markets are rebounding and are expected to serve as the engine for growth in 2010," the report read.
The outlook said the turnaround in Saskatchewan's potash industry is underway as a result of recent sales to both China and India. Potash sales are expected to climb as North America and Brazil enter their spring planting seasons and as buyers re-stock their inventories of the pink plant nutrient.
Although a recovery in the sector has commenced, the Conference Board expects it will take more than just the 2010 calendar year for the market to get back to normal conditions.
"The potash industry will still have a long way to go before fully recovering, thus allowing for more mining gains in 2011 when the province's economy will expand by 2.9 per cent," the Ottawa-based agency said.
The Conference Board also believes Saskatchewan's provincial nominee program will attract more international migrants this year leading to a jump in housing starts.
The board expects housing starts will rise 15.4 per cent to 4,460 new units across the province this year.
A low unemployment rate, strong retail sales and near-term growth in the manufacturing industry, the firm said, will also help to push the province toward its projected GDP rebound in 2010.
By Cassandra Kyle, The StarPhoenix