Nova Scotia Economy Performs Above National Average

Strong private sector investment and a diversified business base pushed Nova Scotia's economic performance above the national average last year, said Finance Minister Don Downe.

Mr. Downe today released the province's economic performance figures for 1998 with projections for 1999.

"The 1998 figures show Nova Scotia outperformed the nation as a whole for the first time in seven years," said Mr. Downe. "And what's better, this trend is expected to continue in 1999."

The projection is consistent with a consensus view of private sector forecasters that shows growth of 3.3 per cent in the gross domestic product in 1998. In comparison, the Canadian economy's growth rate was 3.0 per cent.

It was also the first year that the total number of people employed in Nova Scotia exceeded 400,000.

"You can't ignore the facts," said Mr. Downe. "There are more people working in Nova Scotia than ever before. We have created a climate in this province that is attractive to business, and Nova Scotians now are reaping the benefits, many through a weekly paycheque."

Employment in 1998 averaged 403,700, compared with an average of 391,900 people working in 1997. Mr. Downe points to the Sable Offshore Energy Project as having significant impact on Nova Scotia's gains, but he said employment has also increased in the wholesale and retail trade, business and personal services, manufacturing and tourism.

"All these sectors are realizing positive results," said Mr. Downe. "The bottom line for Nova Scotia is recognized by private sector forecasters who tell us that our economic growth will continue to exceed the national growth rate in 1999."

A number of firms have already announced projects that will help strengthen the economy and Nova Scotia's job performance. These include call centre businesses such as Watt's and Staples, growth in film, video and multimedia opportunities, and production expansions at TrentonWorks, Michelin and Stora.

NOTE TO EDITORS: The outlook report is available at the Department of Finance, seventh floor, 1723 Hollis St., Halifax, or by calling Communications Nova Scotia at 902-424-4492 or e-mailing [email protected] .