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.

Shipbuilding

Matson Orders Two ConRo Ships from NASSCO

Matson Navigation Company, Inc., a subsidiary of container shipper Matson, Inc., has signed a contract with U.S. shipbuilder General Dynamics NASSCO to build two

MN100: Conrad Shipyard

The Company: Conrad Shipyard was established in 1948 and is headquartered in Morgan City, Louisiana. The company designs, builds and overhauls tugboats, ferries,

Heavy Lifting: Giant Pipe Racks Shipped for New FPSO

From Brazil to China and then back to Brazil, five pipe racks and three modules weighing a total of 1,871.51 metric tons and measuring 24,075 m³ will be transported

Navy

NOAA Engineers a Better Current Sensor for Mariners

Navigating into seaports is now safer and more efficient for mariners thanks to improved NOAA technology that ships rely on to give them information about currents.

Iran Vessels Make 'High Speed Intercept' of US Ship

Four of Iran's Islamic Revolutionary Guard Corps (IRGC) vessels "harassed" a U.S. warship on Tuesday near the Strait of Hormuz, a U.S. defense official said, amid

Shots Fired: US Navy Ship Warns Iranian Vessel

A U.S. Navy ship fired warning shots after an Iranian fast-attack craft approached two U.S. ships in the northern Gulf on Wednesday, a U.S. Defense official said.

 
 
Maritime Standards Naval Architecture Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.0769 sec (13 req/sec)