By Taylor MacPherson

P.A. economy stable despite struggling province

Jan 19, 2017 | 5:00 AM

The Saskatchewan economy may be in a downturn, but local organizations say falling resource prices are unlikely to have a major impact on Prince Albert businesses.

The provincial government has projected a deficit of $1 billion by the end of the fiscal year, which Finance Minister Kevin Doherty said was directly connected to a two-year decline in oil and potash prices. An investment forecast published this month by the Business Development Bank of Canada projected business investment in Saskatchewan will decline by $1 billion in 2017, while Canada-wide business investments were predicted to rise by $1.5 billion this year.

Larry Fladager, CEO of the Prince Albert Chamber of Commerce, said business has slowed slightly in the city, but things are not as bad as the numbers might indicate and he expects the economy to bounce back strongly.

“A lot of businesses have told me that things are just not as good as they have been and things are a little bit slower than normal,” Fladager told paNOW. “It’s slow, but it’s not as bad as some might think. It’s going to come back.”

According to Fladager, the economy may have slowed things down a bit, but P.A. businesses are still recording profits.

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“Their profit margins are down, but they’re still making money; they’re just not making as much as they used to,” Fladager said. “Once they ride it out we’ll see good times ahead.”

The national economy is still strong despite the slowdown in the more resource-based provinces, which Fladager said is a hopeful sign.

“The Canadian stock market is in good shape; best shape it’s been in in years. It’s just not translating into the Western [provinces], particularly Saskatchewan and Alberta,” he said. “We’ll rebound. It’ll come back, and I see that optimism for the future.”

Rick Orr, executive director of the Prince Albert Downtown Business Improvement District, said the slumping economy has not had a major impact on the city’s downtown area, where smaller businesses are still profiting.

“From what I see locally, I don’t see that billion-dollar downturn,” Orr said. “I don’t think we’re seeing it in P.A.”

The economic decline, Orr said, is felt largely in resource-heavy cities such as Estevan, Weyburn and Swift Current, but he said Prince Albert’s economy is diverse enough to avoid feeling the same pressure.

Building permits and vacancy rates have not changed significantly from previous years, Orr said, and new big-box stores opening soon show the retail industry is still strong in P.A.

“One of those is a major retailer, Save-On-Foods,” Orr said, “and they’re going to be hiring hundreds of people.”

Taylor MacPherson is paNOW’s court reporter and weekend editor. He can be reached at Taylor.MacPherson@jpbg.ca or tweet him @tmacphersonnews.