HALIFAX, NOVA SCOTIA — (Marketwire) — 09/30/11 — After strong relative performance during the recession, Atlantic Canada will again face a period of below average economic growth, according to a new report from BMO Capital Markets Economics released today Atlantic Canada-s Growth Challenge.
“Atlantic Canada waded through the recession in relatively healthy shape, helped by aggressive fiscal stimulus and ongoing private-sector investment, and was able to sustain average growth at a 2.1 per cent annualized pace over the past decade, slightly outperforming the 1.9 per cent national average over the same period,” indicated Robert Kavcic, Senior Economist, BMO Capital Markets. “However, as stimulus turns to restraint, growth will be pressured by a combination of higher tax burdens, declining capital spending and sluggish labour force growth,” said Mr. Kavcic, while noting that the strong Canadian dollar and sluggish U.S. growth will also restrain activity in the export sector.
“Atlantic Canada has the most challenging demographics of any region of Canada, with trade most concentrated in countries and regions that are not beneficiaries of the global economic gravity shift,” said Kevin Lynch, BMO Vice Chair and a leading organizer of the 4Front Atlantic Conference that will bring together 175 business and academic leaders from Atlantic Canada on October 7 in Halifax. “We must leverage our competitive advantages, develop new markets, create an Atlantic Canada brand and enhance the value added of the products and services we sell abroad,” added Mr. Lynch, inviting Atlantic Canadians to listen in to the first instalment of this annual conference via webcast.
The BMO report provides an economic outlook for 2011 and 2012 as well as overview of the fiscal situation of each province in Atlantic Canada. Highlights of the BMO report include:
The complete report can be found at .
Contacts:
Media contacts:
Ronald Monet
514-877-1873
Sarah Bensadoun
514-877-8224