Potash Production to Boost Saskatchewan’s Economy Amid Low Oil Prices

Mining.com reported that potash production will help support Saskatchewan as the province’s economy has been facing challenges due to the sliding oil price, according to an economic forecast put out by BMO Capital Markets this week.

As quoted in the market news:

While oil production is expected to drop by 4 percent this year, potash output in the province will jump 8 percent and its farm sector is expected to pick up, the report says.

The analysts predict provincial real GDP will grow a mere 1 percent in 2015, only slightly weaker than last year’s 1.4 percent growth, dragged down mostly by the energy sector.

The oil and gas industries, which accounts for roughly 15 percent of Saskatchewan’s GDP, have been affected by a much weaker price environment, said John MacAulay, BMO senior vice president, Prairies and Central Canada.

Click here to read the full Mining.com report.