|
|
Economic Growth Picking Up Steam In Nova Scotia
|
|
|
Location: Blogs News |
 |
| Posted by: ITNovaScotia Admin |
Monday, July 17, 2006 |
HALIFAX, July 17 /CNW/ - Nova Scotia's economy is gathering steam in
2006, according to the Provincial Outlook report issued today by the BMO
Financial Group Economics Department. Growth of 2.0 per cent is expected this
year, compared to last year's 1.1 per cent.
"Consumers have opened their wallets wider, housing construction
continues unabated, non-residential construction is booming, and government
spending is strong thanks to solid offshore gas royalties," said Paul Ferley,
Assistant Chief Economist, BMO Financial Group.
Consumers have gone on a spending spree, with retail sales picking up
substantially this year. So far in 2006, sales are running nearly 8 per cent
ahead of last year's levels.
Meanwhile, housing starts are running well ahead of 2005 rates.
Statistics Canada's investment intentions survey points to a 4.0 per cent
increase in housing construction in 2006, but activity early in the year
suggests even stronger growth. "We expect some slowing in the pace of
residential construction over the remainder of the year, but the total could
still hit 5,400 for the year as a whole," stated Ferley.
Construction is being supported by a number of major projects. These
include the $400 million cleanup of the Sydney tar ponds, the $333 million
Halifax Harbour Solutions project, the $270 million Dartmouth Crossing retail
development, the $220 million expansion of the Halifax airport, the $100
million expansion of the Port of Halifax, the $100 million compression deck at
the Sable Offshore Energy Project and the $100 million upgrade to Imperial
Oil's Dartmouth refinery.
Provincial program spending is budgeted to rise a solid 7.1 per cent in
2006-07. Even so, the province expects to post another surplus, this time of
$72 million, thanks to even higher offshore gas royalties. This points to
another strong increase in real government spending in 2006.
On the downside, employment in the first part of 2006 has shown no growth
relative to the same period a year earlier. Labour force growth has been
negative and the unemployment rate has drifted down toward 8 per cent. "For
2006 as a whole, we expect employment growth of 0.5 per cent," stated Ferley.
Employment in the goods sector is down over 5.0 per cent so far this
year, while employment in the service sector is up about 1.0 per cent.
Employment gains in the service sector have not been broadly based, but rather
concentrated in business services and health.
"A number of customer contact, business outsourcing and information
technology companies have established or expanded operations in Nova Scotia
recently," noted Ferley. "The largest of these is Research In Motion, which
opened a technical support operations centre in April. The centre opened with
50 employees, but the company plans to have 1,200 employees at the centre
within five years."
There are three potential megaprojects in Nova Scotia: the Deep Panuke
offshore gas development, the Bear Head liquid natural gas terminal, and the
petrochemical plant, liquid natural gas terminal and electricity co-generation
plant at Goldboro. The province's economy will receive a significant boost
over the medium term if any of these three projects proceed.
The full Provincial Outlook report is available at www.bmo.com/economic.
|
|
| Permalink |
Trackback |
|
|
|
|
|