Nova Scotia Economic Growth Buoyed by Historic Contract

Thursday, December 08, 2011
Economic growth in Nova Scotia, currently running at 1.6 percent for 2011, looks promising over the next two years, according to the Provincial Monitor report released today by BMO Economics. "We expect growth to accelerate to a 2.5 percent clip by 2013, when the positive impact of the recently announced Federal shipbuilding contract begins to take root," said Robert Kavcic, Economist, BMO Capital Markets.
The contract landed by Irving Shipbuilding to build combat ships for the Royal Canadian Navy is worth an estimated $25 billion through 2030. The Conference Board of Canada estimates that about 8,000 new jobs - more than 1 per cent of total employment in the province - will be sustained over that period, and that real GDP will see a boost of about $800 million per year on average.
"While the exact timing of building is still not certain, we've assumed that some activity will be underway by 2013, boosting real GDP growth roughly 0.5 percentage points above our previous forecast," noted Mr. Kavcic. "The announcement has already had a positive impact on consumer confidence, which posted the biggest increase in Atlantic Canada in more than two years in November."
"The shipbuilding contract announcement has already set in motion a level of planning not seen in a generation, as businesses begin to think through how they can best capitalize on the widespread economic activity that will transform the province over the next 20 years," said Laura Charlton, Vice-President, Nova Scotia District, BMO Bank of Montreal. "The growth opportunities extend well beyond the direct employment of labour, trades, and professionals, to the anticipated demands for increased business related services, housing, commercial and industrial construction, retail development, and a vast spectrum of manufacturing."
Construction activity at Encana's $800 million Deep Panuke natural gas project continues, and production is expected to boost total exports in 2012. Public-sector investment, however, is slowing as stimulus spending retreats. Indeed, overall capital spending in the province is poised to fall modestly this year after growth of 5 per cent per year in the prior two years.
While news of the shipbuilding contract has propped up confidence, consumers are still feeling the impact of last year's HST increase along with higher fuel and utility costs. Meantime, the job market has been sluggish this year, with private-sector employment 2.1 per cent below year-ago levels through November, largely due to weakness in the goods sector.
Nova Scotia's first quarter fiscal update decreased the fiscal 2011-2012 deficit estimate to $319 million (0.8 per cent of GDP), from the Budget's $390 million forecast. The Government re-affirmed its commitment to balance the budget in fiscal 2013-2014.
Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

AET Names DP Shuttle for Statoil Charter

Petroleum tanker owner and operator AET today named its newest vessel, a 120,000 DWT DP2 shuttle tanker, Eagle Bergen.    Eagle Bergen is the second of two vessels

Austal Delivers Final Cape Class Patrol Boat

Cape York, the last of eight new Cape Class Patrol Boats for Australian Border Force (formerly Australian Customs and Border Protection) has been delivered by shipbuilder

HMS Prince of Wales’ Final Carrier Block Delivered

The final sections of the second Queen Elizabeth Class aircraft carrier produced by Cammell Laird arrived at Babcock Rosyth Facilities in Fife on Thursday, September 3,

Navy

HMS Prince of Wales’ Final Carrier Block Delivered

The final sections of the second Queen Elizabeth Class aircraft carrier produced by Cammell Laird arrived at Babcock Rosyth Facilities in Fife on Thursday, September 3,

Canadian Frigates Get a Radar Upgrade

German navigation system manufacturer Raytheon Anschütz has completed factory acceptance tests and delivery of 12 sets of navigation radars for the Canadian Navy’s Halifax-class frigates.

Virginia-Class Submarine Named USS Iowa

Secretary of the Navy Ray Mabus hosted a ship-naming ceremony today in Ames, Iowa to announce that SSN 797, a Virginia-class attack submarine, will bear the name USS Iowa.

 
 
Maritime Contracts Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1833 sec (5 req/sec)