NS only Atlantic province to avoid contraction
March 12, 2009/by Geoffrey Agombar/Spectator/NovaNewsNow.com Although cuts and losses have been announced throughout the region, to date the Maritimes have avoided some of the worst effects of the current financial crisis.
However, an RBC report released today suggests the recessionary wave may soon break harder on Atlantic shores.
A Canada Newswire Toronto bureau (link below) reports that RBC predicts deterioration in the Atlantic region with “little hope of a speedy recovery despite stimulus initiatives by various governments.”
But, for Nova Scotians there is a spoonful of sugar to help the medicine go down. Canada’s Ocean Playground is forecast to be one of only three Canadian provincial economies to see growth this year, along with Saskatchewan and Manitoba. “All but one [Atlantic] province – Nova Scotia – will see contraction in their economies this year,” according to Craig Wright, RBC senior vice-president and chief economist.
That said, RBC still foresees plenty of bitter pills for Nova Scotians to swallow as rising unemployment and slowdowns in housing activity begin to work their black magic. RBC anticipates weakened 0.4 per cent growth, down from an estimated 1.2 per cent in 2008.
For RBC’s province-by-province estimates for growth, housing starts, retail sales, and employment in 2008, 2009, and 2010, click through to Canada Newswire, “Recessionary forces seep through Atlantic Canada: RBC Economics” (March 12)