This report examines recent developments in Atlantic Canadian mining and energy sectors, the economic potential of these reserves, and projections regarding market development.
Atlantic Canada’s international export performance has improved since the mid-1990s with a significant boost from energy exports after 1999. The three-fold increase in energy exports between 1999 and 2002 accounted for 82% of the growth in Atlantic Canada’s merchandise exports over this period. These energy exports reflect increased shipments of refined petroleum and offshore crude oil and natural gas. This Report Card provides an overview of recent trends in international export performance in each Atlantic province.
Foreign direct investment (FDI) is becoming an increasingly important part of the Canadian economy, yet the available evidence suggests that the amount of FDI flowing into the Atlantic region is small relative to the size of its economy. Based upon a database compiled by APEC, call centres are the largest employers, followed by manufacturing and the retail sector. The United States is by far the biggest investor in the region. Foreign firms make an important contribution to the provincial economies in Atlantic Canada, boosting investment, employment and exports.
A huge increase in revenues from Atlantic Canada’s international energy exports is masking the stagnation in the region’s non-energy sector. International sales of energy products have doubled since 2000 to reach $12.3 billion in 2005. However, aggregate non-energy merchandise exports from the Atlantic provinces have stalled at about $12 billion since 2000. Exporters have had to cope with a 40% appreciation of the Canadian dollar since January 2003, increasing competition from low-cost producers, higher energy and transportation costs, and weak demand in some sectors.
The energy sector continues to be the major driver of economic growth in Atlantic Canada. However, the mix of energy projects is changing, as electricity generation and distribution projects now hold a much greater presence and the oil and gas industry has shown a waning influence. The 23rd edition of the Inventory identifies 357 projects in various stages of development across Atlantic Canada. The total value this year is $53.7 billion, up nearly 12% over last year’s Inventory. The accompanying issue of Atlantic Report details related developments, including demand for energy in the U.S.
APEC has been asked by the Forest Products Association of Nova Scotia (FPANS) to provide an updated economic profile of the of the forest industry in Nova Scotia. The report highlights the major challenges facing the industry, recent economic trends within the Nova Scotia forest industry, its contribution to the provincial economy and how the industry is addressing sustainable forest management issues.
