HALIFAX, June 25 /CNW/ - While the Nova Scotia economy has fared
relatively well during this downturn thanks to robust non-residential
construction activity, weak manufacturing and export sectors will pull down
real GDP by 0.9 per cent this year, according to the Provincial Outlook report
from BMO Capital Markets Economics. The economy is projected to rebound in
2010, with expected growth of 1.5 per cent.
"Construction of EnCana's $700 million Deep Panuke offshore natural gas
project headlines a strong lineup of projects underway," according to Robert
Kavcic, Economist, BMO Capital Markets. "Indeed, Nova Scotia is one of only
two provinces expected to see higher capital spending this year, with
non-housing expenditures likely to jump 6.8 per cent - the biggest increase
However, manufacturing remains under water, with shipments down 17 per
cent year-over-year through April and employment in the sector down a harsh 15
per cent year-over-year in May. "This has helped push the unemployment rate
above 9 per cent-while the slackening of Nova Scotia's labour market has been
tame relative to most parts of the country, it will still weigh on domestic
demand," said Kavcic.
The provincial budget, tabled in May, was defeated by the provincial
legislature, leading to an election with the NDP winning a majority
government. A new budget will be tabled this fall.
The complete report can be found at www.bmocm.com/economics.
For further information:
For further information: Media Contact: Lucie Gosselin, Montreal,
firstname.lastname@example.org, (514) 877-8224, Internet: www.bmo.com