The Conference Board of Canada says it is expecting localized closures and a retrenchment in household spending and business activity will hold back the pace of economic recovery into mid-2021. The Board says most provinces won’t see a return to pre-COVID economic levels until the second half of 2021. But the impact on provinces will vary because of varying effects of the pandemic on different industries across the country. Still, federal and provincial government will record massive deficits this year resulting in weak spending growth once the pandemic is behind us.

The Board says, in Saskatchewan the economy declined by 0.8 per cent last year. With the pandemic at the forefront of economic woes in 2020, our real GDP in the province will fall 4.9 per cent this year. The Board expects a 4.5 per cent rebound next year. The deep recession initially forecast is looking to be less severe. Despite the sizable hit to the energy and resource sectors, the province has been able to weather the COVID storm better than most provinces. As well, a few key factors, including a recovery in agriculture exports and prices, are helping to offset the impact on overall economic growth.