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September 15, 2014CURRENT ECONOMIC ENVIRONMENT The Economics and Statistics Division has revised its
Current Economic Environment report to include the latest outlook and information on Nova Scotia's economy, national economic performance and the global economic environment. The following are some highlights from the report:
HIGHLIGHTS
Preliminary estimates for 2013 show Nova Scotia grew at 0.8 per cent in 2013, a pace similar to recent years. The economy is forecasted to pick up in both 2014 to 1.4 per cent and again in 2015 to 1.9 per cent.
Amid new geopolitical crisis the global economy has continued to recover and will strengthen over the next two years.
After a decline in activity in the winter, the US economy expanded 4.2 per cent in the second quarter as improving labour markets have allowed extraordinary monetary stimulus to be slowed.
Canada real GDP expanded for the twelve consecutive quarter with consumer spending continuing to account for the largest gains. Exports have picked up but sustained activity in the sector will be needed to reinvigorate business investments that have been weak for the past few years.
Inflation has risen closer to 2 per cent in both Canada and Nova Scotia in recent months as price pressures from a lower Canadian dollar and energy are passed to consumers. Core CPI in Canada was 1.7 per cent in July 2014.
Nova Scotia international goods exports have grown 41.1 per cent in 2014 as natural gas production from Deep Panuke has been near full capacity since January and non-energy exports have seen robust growth.
So far in 2014, the labour force and employment have both declined by 1.8 per cent. A large decline occurred in the number of self-employed and a smaller decline in the number of employees.
Residential investment declined 19.6 per cent over the first half of the year as new dwelling construction slowed for singles and apartments. Housing inventories are up and home prices are flat or falling in 2014.
Non-residential construction has fallen 5.9 per cent over the first half of the year as the previous year high level of commercial buildings construction has not been repeated.
Retail sales increase 2.4 for Jan-July 2014 with greater sales at gasoline stations, general merchandise stores, and motor vehicles and part dealers.