Nova Scotia Releases First Business Climate Index

ECONOMIC DEVELOPMENT--Nova Scotia Releases First Business Climate Index

Nova Scotia ranks fourth in Canada as a place to start and expand a business, according to the province's newly released Business Climate Index. The publication monitors and compares economic and business-related data with information from other provinces.

"This ranking is very positive news that we'll work hard to maintain and improve," said Economic Development Minister Cecil Clarke.

The Business Climate Index compares Nova Scotia's performance to that of other provinces according to 39 business climate indicators. The data is compiled primarily from Statistics Canada and is based on the most recent year available. The province adapted its methodology for the index from work done by CanMac Economics.

"This is just the kind of tool we've been looking for," said Dick Smyth, vice president (Nova Scotia) for Canadian Manufacturers and Exporters. "Having an objective basis of measurement will be an invaluable guide to business and government in working to improve the conditions that lead to increasing economic progress."

The index shows both strengths and weaknesses in Nova Scotia's business climate. The province is strong in areas such as job growth in new business and transportation costs, but compares less favourably to other provinces in other areas, such as the cost of workers' compensation premiums and attracting skilled immigrants.

"This index points out a number of challenges that we'll be able to address head-on," said Mr. Clarke. "Other areas will require the business community and municipal and federal governments to take the lead. But we now have solid information at hand about the factors affecting successful business growth and making the economy work better."

The Business Climate Index was developed by the Office of Economic Development after extensive discussions with a number of business organizations. The index was recommended in Nova Scotia's economic growth strategy, Opportunities for Prosperity.

"As a government, we are delivering on our commitment to make Nova Scotia the most attractive place to do business in Atlantic Canada. This index is an important tool to build on our recent success," said Mr. Clarke.

The Office of Economic Development has now begun to share the index with business organizations throughout the province. A summary document has been mailed to thousands in the business community and the full report is available on the Web site, at www.gov.ns.ca/econ/businessclimate/.

"We've got a good start here, but there's still some fine-tuning to be done," said the minister. "I'm looking forward to hearing feedback from more business people as I travel around the province this summer."