Saskatchewan’s record 2013 crop has pushed the province’s forecasted gross domestic product a full percentage point higher, according to the mid-year financial report released today.
The 34.2 million tonne crop is 22 percent larger than the budget assumption. As a result, the GDP forecast of 2.6 percent climbs to 3.6 percent for the fiscal year.
The report said the large crop changes annual growth rate calculations but doesn’t affect the base level of economic activity.
Officials assume that crop production in 2014 will return to more normal levels.
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Overall, potash revenue is expected to be down $107.2 million from the budget because of lower prices, while oil revenue is up $155.3 million due to higher prices.
On the expense side, the ministry of government relation is expected to spend $43.6 million more than budget due to Provincial Disaster Assistance Program claims and prior-year claims from flooding.
The Saskatchewan Crop Insurance Corp. is projecting a surplus of $308.4 million at mid-year, up from its $90.4 million estimate due to lower than expected payouts.
This is one of the large contributors to an expected $467 million summary financial surplus at mid-year. That is an increase from the budgeted surplus of $149.8 million.
The general revenue fund surplus is projected to be $11.4 million after that same amount is transferred to the growth and financial security fund.
Finance minister Ken Krawetz said the province is well positioned to withstand volatility in the natural resource sector expected through the rest of the fiscal year.
