Upside growth potential for Nova Scotia's economy, says RBC Economics



    TORONTO, March 30 /CNW/ - Nova Scotia's economy remains healthy with
expected growth of 2.4 per cent for 2007, and the potential for stronger
growth in the next couple of years, according to a provincial economic
forecast released today by RBC.
    "Receiving conditional environmental approval to build a $4.5 billion
petrochemical plant and an LNG receiving terminal in Goldsboro could have a
substantial impact on the province," said Craig Wright, vice-president and
chief economist, RBC. "While the project still has to go through a number of
other approvals, the effects of as many as 3,000 construction jobs and roughly
600 permanent positions could be significant."
    The recent federal budget provided some tax relief for prospective LNG
terminals. Prior to the budget LNG facilities were eligible for a capital cost
allowance rate of four per cent and the proposed change doubles this figure.
The new rate applies to certain eligible assets going forward and should help
boost Canada's competitiveness in attracting these types of large-scale
investments.
    While Nova Scotia was the only province to register a decline in job
creation for 2006, the report noted that sizeable job gains are being realized
in several service sector industries, which should benefit consumer spending.
    For the overall Canadian economy, RBC forecasts that the gap between
growth in the more heavily resource based provinces and central Canada will
narrow over 2007-08. Newfoundland and Labrador will be the leader this year
with growth of four per cent followed by Alberta at 3.6 per cent. Prince
Edward Island and Ontario will be at the back of the pack, each with growth
rates of about two per cent.
    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.
    According to the report (available online as of 8 a.m. E.D.T., at
www.rbc.com/economics/market/pdf/provfcst.pdf), provincial forecast details
are as follows:


    

                     Real                Housing              Retail
                     GDP                 starts               sales

                                        Thousands
               06     07     08     06     07     08     06     07     08
               --     --     --     --     --     --     --     --     --
    NFLD.     3.5    4.0    1.5    2.2    2.1    2.0    2.9    2.0    2.0
    P.E.I     1.9    1.9    1.7    0.7    0.7    0.7    4.0    2.1    2.1
    N.S.      2.4    2.4    2.3    4.9    4.5    4.4    6.3    3.5    3.0
    N.B.      2.5    2.4    2.6    4.1    3.8    3.9    5.5    3.2    3.2
    QUE.      2.0    2.1    2.7   47.9   42.1   43.0    4.6    4.1    4.0
    ONT.      1.3    2.0    3.1   73.4   66.8   67.7    4.0    4.2    5.8
    MAN.      3.4    2.7    2.9    5.0    4.5    4.3    5.8    4.2    4.1
    SASK.     3.6    2.8    2.9    3.7    3.4    3.3    5.9    5.0    4.5
    ALTA.     6.5    3.6    3.2   49.0   44.0   41.4   16.0    9.3    8.0
    B.C.      4.7    3.4    3.4   36.4   33.9   33.8    6.2    6.6    6.3
    CANADA    2.7    2.5    3.0    229    207    206    6.2    5.2    5.2


                  Employment              CPI

               06     07     08     06     07     08
               --     --     --     --     --     --
    NFLD.     0.7    0.5    0.1    1.8    1.2    1.4
    P.E.I.    0.6    0.6    0.4    2.2    1.0    1.3
    N.S.     -0.3    0.8    0.3    2.1    1.3    1.3
    N.B.      1.4    1.2    0.4    1.6    1.1    1.4
    QUE.      1.3    1.2    0.9    1.7    0.8    2.2
    ONT.      1.5    1.4    1.2    1.8    1.0    2.4
    MAN.      1.2    0.8    0.6    1.9    0.9    1.8
    SASK.     1.7    2.1    0.8    2.0    1.2    2.0
    ALTA.     4.8    3.8    1.6    3.9    3.0    2.6
    B.C.      3.1    3.0    2.0    1.8    1.9    2.8
    CANADA    2.0    1.8    1.2    2.0    1.7    2.4
    





For further information:

For further information: Craig Wright, RBC Economics, (416) 974-7457;
Derek Holt, RBC Economics, (416) 974-6192; Jackie Braden, RBC Media Relations,
(416) 974-2124


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