TORONTO, Oct. 12 /CNW/ - According to a provincial forecast released
today by RBC, Nova Scotia's economic growth is expected to increase slightly
to a still below-average rate of 2.4 per cent in 2007 and 3.1 per cent in
2008.
"Supported by healthier labour markets, decent wage growth and an
expanding service sector, Nova Scotia's economic growth is up slightly from
last year's tepid pace," said Craig Wright, vice-president and chief
economist, RBC. "A strong performance from the province's goods sector has
helped boost the economy and offset the manufacturing, forestry and
construction sectors which remain soft."
RBC noted housing markets are still strong with average house price
growth tracking at an eight per cent pace this year. Anticipated weakness in
non-residential construction this year stems from a temporary lack of
mega-projects.
The Keltic Petrochemical plant, which begins construction next year,
should provide a boost to the economy. The Deep Panuke project appears on
track to begin construction in 2008 and production in 2010, when it is
expected to have the capacity to ship up to 300 million cubic feet of natural
gas per day. If both the Deep Panuke and Keltic Petrochemical plants commence
construction in the latter part of the decade they will be a boon to the
province's construction sector. Together these projects present significant
upside prospects for economic growth.
Across the provinces, Newfoundland and Labrador is expected to be the
growth leader this year, with Alberta moving into the lead in 2008, rivaled
only by Saskatchewan. Manitoba's steady growth and inflation rates will keep
it in the middle of the western provincial pack, and B.C.'s growth rate will
move slightly downward. RBC's forecast for Ontario's economy has been revised
downward to the bottom of the pack among all the provinces. Quebec should fare
somewhat better than Ontario next year, until currency depreciation, lower
energy prices, improvements in the U.S. economy, and capital spending lift
central Canada's manufacturers and exporters. While P.E.I.'s growth prospects
are modest, Nova Scotia and New Brunswick are well-positioned for better
long-run growth as a result of renewed prospects for several large-scale
capital projects.
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:
http://www.newswire.ca/en/releases/a.../12/c3209.html
If you look at the bottom of the article you can see the estimate for 09 and it stands at 3.5%, likely due to the Keltic project.
Linear Mode
