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BMO Financial Group

February 16, 2012 06:00 ET

BMO Blue Book: Shipbuilding Contract Bringing Growth, Jobs to Nova Scotia

HALIFAX, NOVA SCOTIA--(Marketwire - Feb. 16, 2012) - Although economic growth in Nova Scotia is currently sluggish, prospects are strong for the next two years, according to the BMO Blue Book released today by BMO Capital Markets Economics and BMO Commercial Banking. Much like the U.S. Federal Reserve's Beige Book, the BMO Blue Book combines the expertise of BMO's economists with information on current business conditions provided to BMO's commercial bankers by local businesspeople.

"The contract landed by Irving Shipbuilding to build combat ships for the Royal Canadian Navy is worth an estimated $25 billion through 2030," said Robert Kavcic, Economist, BMO Capital Markets. "The Conference Board of Canada estimates that about 8,000 new jobs - more than 1 per cent of total employment in the province - will be sustained over that period, and that real GDP will see a boost of about $800 million per year on average."

"From trades to professionals, in Halifax and elsewhere in the province, whole industries are set to benefit from this contract with ripple effects throughout the economy," said Laura Charlton, District Vice-President, Nova Scotia, BMO Bank of Montreal. "Most importantly, hundreds of people who would otherwise have needed to leave the province to work in their chosen fields will get the opportunity to stay in Nova Scotia for their entire careers - a further boon to the provincial economy.

"A massive boom is on the way that will benefit the provincial economy for years to come," concluded Ms. Charlton. "For the next two years, we're going to see businesses ramping up for the start of the project; by 2015, there will be tangible benefits to the province."

The full BMO Blue Book can be downloaded at http://bmonesbittburns.com/economics/reports/20120216/bb201202.pdf.

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