Nova Scotia's economy stays healthy: RBC Economics
TORONTO, June 22, 2006 — Renewed energy hopes
and a strong fiscal position have enabled Nova Scotia's economy
to remain healthy, with expected growth of 2.6 per cent this
year, according to a provincial economic forecast released
today by RBC Financial Group.
"Royalty revenues came in $100 million over original
estimates, helping the government post a healthy surplus of
$151 million last year," said Craig Wright, vice-president
and chief economist, RBC. "This windfall, coupled with
2006-07 projections of a $72 million surplus and a doubling
of royalties, has helped Nova Scotia position itself for continued
fiscal stability and steady growth for the upcoming year."
According to the report, after ongoing deliberations over
profitability, the Deep Panuke gas project owners have announced
their renewed intentions to file development plans later this
year. Discussions are underway with the government regarding
fiscal and regulatory terms for the project and this could
enhance the province's fiscal outlook. "This is a good
sign for the energy sector as the Bear Head natural gas terminal
has been delayed, due to difficulties in securing a supply
source," said Wright.
Aiding its strong economic position, Nova Scotia's debt-to-GDP
ratio is projected to be down to 38.2 per cent for 2006-07
from 48.7 per cent in 1999-2000.
While regional differences exist across the country, Canada
is well positioned to absorb global economic shocks as a result
of geographically diversified investments, a strong consumer
sector and sound fiscal policy. Newfoundland and Labrador
will be the provincial growth leader this year with activity
in the oil and nickel sectors driving growth. After Newfoundland
and Labrador, the strongest economies will be west of the
Manitoba-Ontario border for 2006.
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:
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For more information contact:
Craig Wright, RBC Financial Group Economics,
(416) 974-7457
Derek Holt, RBC Financial Group Economics,
(416) 974-6192
Kathy Bevan, RBC Financial Group Media Relations,
(416) 974-8810
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