Nova Scotia's economic growth modest, says RBC Economics
TORONTO, October 13, 2006 — Nova Scotia's economy
is expected to remain healthy, with growth of 2.6 per cent
this year and 2.4 per cent in 2007, according to a provincial
economic forecast released today by RBC.
"Nova Scotia's forecast remains solid with growth in
line with the national average," said Craig Wright, vice-president
and chief economist, RBC. "Strong consumer demand, bolstered
by a robust housing sector and a healthy fiscal picture provide
critical support for the economy going forward."
Despite a widespread cooling in housing markets across Atlantic
Canada, sustained activity in Nova Scotia's housing sector
has kept its market strong. Price gains, led by a tight resale
market, should continue to benefit the consumer sector. Retail
sales are tracking about seven per cent higher on a year-to-date
basis - the third fastest pace in the country behind only
British Columbia and Alberta.
According to the report, adding to Nova Scotia's consumer
health is a fiscal situation that continues to brighten, with
a modest upward revision to the forecasted surplus this year,
and a healthy dose of fiscal stimulus ahead.
RBC notes that revised plans for the Deep Panuke project
include a 25 per cent reduction in production. If the long-debated
project goes forward, production could begin in 2010, which
would be good news as the Sable Offshore Energy Project is
now the only field in production off Nova Scotia.
For the overall Canadian economy, RBC has revised its 2006
growth forecasts downward with Ontario being sharply downgraded
to last place among the provinces. Alberta and British Columbia
are now in first and second place respectively, bumping Newfoundland
and Labrador to third place for growth in 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.
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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
Beja Rodeck, RBC Media Relations,
(416) 974-5506
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