2024–2025 Departmental Results Report – Operating context

Economic context

Despite easing monetary policy, falling interest rates, and strong population growth – prime conditions for business expansion in 2024 – Canadian and Prairie small and medium-sized enterprises (SMEs) faced significant economic headwinds from the threat, uncertainty, and eventual imposition of U.S. tariffs in late 2024 and early 2025. In 2024, more than $200 billion (80%) of Prairies exports of goods were destined for the U.S., accounting for more than a third of Canada’s goods exports to the U.S. Although trade disruption and uncertainty started to weigh on investment intentions and business confidence, strong performance from natural resources and robust migration were key drivers of business growth and signals of optimism in a Prairies economy that continues to be a crucial driver of Canadian prosperity.

Alberta’s economy, supported by record-level oil production, grew by 2.7% to rank third among the provinces in GDP growth in 2024. Saskatchewan, driven by strong potash production and major project construction, grew by a robust 3.4% to rank second, as GDP reached a record high in 2024. Manitoba’s economy, propelled by large real estate and construction projects, but facing subdued agricultural and manufacturing production, expanded at a modest 1.1%.

As economic opportunity and relative affordability boosted international and interprovincial migration, the Prairies gained more than a quarter of a million people in 2024. Population growth reached 4.4% in Alberta, 2.7% in Manitoba, and 2.5% in Saskatchewan, with cities on the Prairies ranked among the fastest growing in Canada. As labour force growth was met with generally strong job creation, employment increased by over 109,000 (+2.9%) persons on the Prairies in 2024, with employment growth reaching 3.1% in Alberta, 2.6% in Saskatchewan, and 2.5% in Manitoba. Robust population growth, a key driver of the economy, also supported the growth of SMEs in the Prairies by adding to an already young and educated labour force, critical for innovation and expansion.

With more frequent and powerful storms, floods, and wildfires, the Prairies are increasingly at the mercy of extreme weather events that devastate communities, disrupt economic activity, and limit growth opportunities. Such a devastating event occurred on July 22, 2024, when wildfires forced the evacuation of the town of Jasper and the surrounding national park. After burning down roughly one third of the town, the Jasper wildfire was the second costliest wildfire in Canada’s history, costing an estimated $4.4 million per day in lost revenue and at least $1.2 billion in insured damages.

PrairiesCan supports businesses and communities

SMEs are central to our economy, accounting for 99.8% of businesses and 88% of employment, and are the primary channel through which the department promotes economic growth and development in the Prairies. In 2024-25, PrairiesCan supported over 8,500 SMEs in the region through programs designed to improve competitiveness, enhance innovation, promote clean technology adoption, and foster inclusive growth.

Moreover, PrairiesCan supported communities in developing economically as they faced ongoing economic challenges, including tariff uncertainty and the Jasper wildfire recovery. Through its activities, the department strengthens and supports a competitive, innovative, resilient, and inclusive Prairies economy.