Province Heads for First Trade Surplus in Years

 ECONOMIC DEVELOPMENT--Province Heads for First Trade Surplus in Years

Nova Scotia is headed toward its first trade surplus in a generation, as the effects of the offshore oil and gas industry work their way into the economy.

The first-quarter merchandise trade surplus of $21.3 million means that for the first time in years the province is exporting more than it is importing.

"This is a compelling indication of Nova Scotia''s growing independence and prosperity," said Economic Development Minister Gordon Balser. "The exports of natural gas started at the beginning of 2000, but now we''re into the first year, gas is already one of our major export commodities, and it will likely continue to grow."

Last year, Nova Scotia''s goods exports increased about 34 per cent, almost half of which was related to natural gas. The export of services also increased 10.2 per cent, indicating a growing strength throughout the province''s economy.

Mr. Balser said that, while the Sable offshore project has already provided a major boost to the Nova Scotia economy, our exports are more diversified than other Atlantic provinces. Traditional resource-based sectors, for instance, are still showing significant growth. Our diversified seafood exports grew to more than $1 billion in 2000, as did the exports of forest products. Industrial minerals exports (including gypsum and crushed stone) have grown steadily since 1996 to reach $120 million.

The United States and Japan are the top two foreign destinations for Nova Scotia exports, and the Northeastern U.S. -- Massachusetts in particular -- is the biggest market within the US. With the arrival of Sable gas, exports to Massachusetts have grown 173 per cent. Also growing exponentially as leading markets for the province are New York, (up 57 per cent) South Carolina (up 271 per cent) and Georgia (up 520 per cent).

"Our economic growth strategy, Opportunities for Prosperity, outlines the need to promote exports aggressively -- and it''s a strategy that''s working," said Mr. Balser.