According to the latest provincial economic outlook released by RBC, strong commodity exports will pump up Saskatchewan's economy over the next two years, with growth expected to be 3.7 per cent for 2008, rising to 3.8 per cent in 2009.

Saskatchewan's nominal exports are on a tear, running at a 40 per cent growth rate over the first four months of 2008, more than double the rate posted for 2007. This largely reflects higher commodity prices, which in turn are helping to boost household incomes and consumer spending. The province's retail sales are 15 per cent higher on a year-to-date basis, the strongest pace on record since the early 1990s. The positive impact of the terms of trade shock is also being supplemented domestically by the one percentage point cut to the GST earlier this year, ongoing job growth and the surge in migration to the province. While a robust job market and wave of new residents will continue to support residential investment, a deterioration in housing affordability will likely dampen activity in 2009.

Another benefit of the commodity boom is strong investment by businesses over the next few years. Sizable projects to further develop energy potash and uranium resources will boost near-term capital spending. Saskatchewan's economic outlook in the medium term looks equally promising with the development of various oil reserves, such as Bakken field in the southeastern corner of the province.

The RBC Economics Provincial Outlook assesses the provinces according to economic growth, employment growth, unemployment rates, personal income growth, retail sales, housing starts and the Consumer Price Index.

Western Canada is poised to far outpace Eastern and Central Canada for GDP growth, according to RBC's latest provincial outlook.

The bank expects B.C.'s GDP to grow 2.2% in 2008 and 2.9% in 2009. Canada-wide GDP projections are for 1.4% growth in 2008 and 2.5% growth in 2009. B.C.'s employment growth is similarly expected to outpace the Canadian average.

"The current decade has proven to be very prosperous for British Columbia as 2007 marked the sixth consecutive year of economic growth above of the national average," said Craig Wright, RBC's senior vice-president and chief economist. "We expect this trend to continue right through to 2010."

The three other western provinces are similarly expected to outpace the Canadian average for growth.

Wright warned that B.C.'s exporters are likely to face challenges, particularly the province's lumber producers.

B.C. retail sales growth is another challenge.

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Sleeman Breweries Ltd. is now marking its 20th year in business. It was sold to Japan’s Sapporo Brewing in 2006, but there's been one thing it didn’t change and that's chairman and chief executive, John Sleeman. He started the first brewery in Guelph, reviving a family brewing tradition dating back to the 1800s. When he was here a few years ago he was a guest at my Executive Roundtable Breakfast. He showed us the original recipe book of his great grandfather who was the original Sleeman’s Brewery. The Sleeman family has brewed beer in Guelph since 1847.

John was in the restaurant and beer distribution business before he started the company all over again, buying it from Standard Brands for one dollar. It had sat in their vault for years doing nothing after the American company bought the company.

The Okanagan Spring Brewery in Vernon has been a long-time major player in the Sleeman’s group of breweries across the country.

The Japanese recently asked John to stay at least five more years. They've been very respectful of what Sleeman has built and who is very easy to work with.

Had it been purchased by a U.S. company, they would probably not have asked him to continue. If the purchase had been made by one the large Canadian breweries they could have moved production into one of their own under-used plants.

He told us that the company wasn’t for sale, but there was a fear of one Canadian brewer (Labatt) going the hostile route. Sleeman had been making beer for Sapporo for the American market. John went to them and they said yes. Their added expertise has made breweries like the Vernon operation operate at full capacity.

Sapporo took their Quebec brewed Unibroue to Japan, where they own a chain of restaurants called the Lion pubs. Of all the beers Sleeman makes, Unibroue is the one the Japanese warmed to most. La Blanche de Chambly and Fin du Monde are very popular there. Unibroue products also are sold in Alberta and B.C.