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Drought drags down Saskatchewan economy in 2021

September 23, 2022, 11:00 a.m. (EDT)

Saskatchewan (-0.3%) was the lone province to see its economy contract in 2021. While activity was up in most sectors of the economy, those gains were entirely negated by the worst drought in nearly two decades, which slashed crop production by almost half from a year earlier.

Drought devastates crops

Crop production fell by a record-high 47% year over year in 2021. The oats and dry pea harvests were down by half, while wheat, canola, lentil and barley production all fell about 40%.

Mining and quarrying (except oil and gas) activity was up 6.9%, mostly due to potash mining. 

Construction activity was down for a seventh year in a row, despite an 18.1% increase in residential building.

Service sector approaching pre-pandemic levels

Economic activity in the service sector (+4.0%) approached pre-pandemic levels, with most of the growth coming from health care and social assistance. Retail sales (+7.1%) were above pre-pandemic levels, led by higher sales at motor vehicle dealers and home and garden centres. 

In 2021, transportation and warehousing slid (-0.9%) and was 9.4% below the 2019 level, as further declines in truck and rail transportation more than offset an uptick in crude oil and other pipeline transportation.

To learn more, check out Gross domestic product, 2021: An in-depth look at provincial and territorial economies.

Contact information

For more information, contact the Statistical Information Service (toll-free 1-800-263-1136514-283-8300infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).