Economic Development Regina – REGINA – The Greater Regina Area’s business executives are showing more optimism when it comes to forecasting the economic environment for 2019. When compared to the last quarter of 2018, our latest Regina Executive Leadership Outlook (RELO) shows an increase in the percentage of executives believing the economy will perform better in the next 12 months.
RELO is a quarterly publication aimed at capturing the thought leadership of senior business leaders in the Greater Regina Area on key issues facing the GRA. The Executive Confidence Index is currently 2.16, an increase from 2.13 in the last quarter of 2018, demonstrating positivity among GRA leaders for 2019.
(Executive Confidence Index graphic)
“We are seeing signs that a negative mindset that was evident late last year is turning around,” said David Froh, Vice President of Economic Development Regina. “Business Leaders are telling us that they expect 2019 to be a year of breaking loose from some of the sluggishness of the past year or so.”
The increase in this quarter’s Executive Confidence Index is due to a decrease in the percentage of executives responding that the economy will remain unchanged in the next 12 months across all indicators.
“It is interesting to see the thinking among our survey participants,” said Val Sluth, CEO of Praxis Consulting. “What we are really measuring is a change in sentiment that was leaning negative about our economic prospects, now heading more toward the positive.”
Some other highlights of the first quarter 2019 survey:
- Less than half (41.2%) of respondents expect their total fixed investments to remain the same over the next twelve months. The number of respondents expecting investments to increase is up 19.0% quarter-over-quarter.
- The majority (82.4%) of respondents expect to employ more or the same amount of people over the next year.
- Over three quarters (76.5%) of respondents expect sales revenue to increase or remain the same in the next 12 months.
- Over three quarters (79.4%) of respondents expect their business profitability to increase or remain the same over the next year.
The economies of Saskatchewan and Regina are showing positive signs for growth in 2019 and beyond. For the City of Regina, the real GDP rose a modest 1.8% in 2018 and the Conference Board of Canada projects continued modest growth in 2019 for Regina, as the real GDP is expected to rise by 2.2%. Although it may be too soon to state that the economy is in full recovery mode, it is fair to suggest that the downturn has ended.
A summary of the Regina Executive Leadership Outlook is available at:
https://economicdevelopmentregina.com/economic-data/leadership-outlook
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For more information, contact:
Alison Barton
Manager, Corporate Communications
Economic Development Regina
P: 306-565-6385
E:abarton@economicdevelopmentregina.com
Valerie Sluth
CEO
Praxis Consulting
P: 306-545-3755
About EDR
Economic Development Regina Inc. (EDR) is the economic development agency for the Greater Regina Area. EDR is a not for profit economic development corporation, governed by a volunteer board of directors. EDR provides leadership to the community to support industry growth and diversification through retention and expansion of existing business and encouraging investment, development of industry and tourism.
In collaboration with key stakeholders, we work to identify, develop and promote opportunities that advance economic prosperity and ensure the Greater Regina Area offers a vibrant and diversified economy for investors, is a positive destination experience for visitors and offers a high quality of life for residents.
www.economicdevelopmentregina.com
About Praxis
Praxis Consulting is Saskatchewan’s largest locally-based management consulting firm. Praxis works collaboratively with clients in the facilitation of growth and excellence. Leveraging an unmatched wealth of experience across multiple sectors, Praxis adds value to their clients through:
- Research: Information gathering and data analytics.
- Strategy: Thought-leadership, rigorous planning, and pragmatic strategies.
- Results: Cascading strategy and culture within the organization.