Nova Scotia - Economy

Economy

Per capita GDP in 2010 was $38,475, significantly lower than the national average per capita GDP of $47,605 and a little more than half that of Canada's richest province, Alberta. GDP growth has lagged behind the rest of the country for at least the past decade.

Nova Scotia's traditionally resource-based economy has become somewhat more diverse in recent decades. The rise of Nova Scotia as a viable jurisdiction in North America, historically, was driven by the ready availability of natural resources, especially the fish stocks off the Scotian Shelf. The fishery was pillar of the economy since its development as part of the economy of New France in the 17th century; however, the fishery suffered a sharp decline due to overfishing in the late 20th century. The collapse of the cod stocks and the closure of this sector resulted in a loss of approximately 20,000 jobs in 1992. Other sectors in the province were also hit hard, particularly during the last two decades: coal mining in Cape Breton and northern mainland Nova Scotia has virtually ceased production, and a large steel mill in Sydney closed during the 1990s. More recently, the high value of the Canadian dollar relative to the U.S. dollar has hurt the forestry industry, leading to the shut down of a long-running pulp and paper mill near Liverpool. Mining, especially of gypsum and salt and to a lesser extent silica, peat and barite, is also a significant sector. Since 1991, offshore oil and gas has become an increasingly important part of the economy, although production and revenue are now declining Agriculture remains an important sector in the province, particularly in the Annapolis Valley.

Nova Scotia’s defence and aerospace sector generates approximately $500 million in revenues and contributes about $1.5 billion to the provincial economy annually. To date, 40% of Canada’s military assets reside in Nova Scotia. Nova Scotia has the fourth-largest film industry in Canada hosting over 100 productions yearly, more than half of which are the products of international film and television producers.

The Nova Scotia tourism industry includes more than 6,500 direct businesses, supporting nearly 40,000 jobs. 200,000 cruise ship passengers from around the world flow through the Port of Halifax, Nova Scotia each year. This industry contributes approximately $1.3 billion annually to the economy. The province also boasts a rapidly developing Information & Communication Technology (ICT) sector which consists of over 500 companies, and employs roughly 15,000 people. In 2006, the manufacturing sector brought in over $2.6 billion in chained GDP, the largest output of any industrial sector in Nova Scotia. remains by far the largest single employer in this sector, operating three production plants in the province.

The average income of a Nova Scotian family is $47,100, the gross ranking close to the national average; for Halifax, the average family income is $58,262, which far surpasses the national average.

Nova Scotia has a number of incentive programs, including tax refunds and credits that work to encourage small business growth. The province is attracting major companies from all over the world that will help fuel the economy and provide jobs; companies like Research in Motion (RIM) and Lockheed Martin have seen the value of Nova Scotia and established branches in the province.

Though only the second smallest province in Canada, Nova Scotia is a recognized exporter. The province is the world’s largest exporter of Christmas trees, lobster, gypsum, and wild berries. Its export value of fish exceeds $1 billion, and fish products are received by 90 countries around the world.