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Robust construction spending will help offset a downturn in manufacturing for Nova Scotia, according to a provincial outlook report released today by BMO Financial Group.

“Non-residential construction continues to march ahead, and should continue next year with EnCana's $700 million Deep Panuke offshore natural gas project,” said Doug Porter, Deputy Chief Economist, BMO Capital Markets. “Manufacturing will get a boost from a contract to maintain Canadian military helicopters.”

Highlights of the report include:

• GDP growth for Nova Scotia is expected to dip to 1.7 per cent in 2008 and then rise to 2.1 per cent in 2009.
• Unemployment rate should rise to 8.3 per cent in 2008 and 2009.
• Housing starts will dip to 3,200 this year and 3,000 next year.

The complete report can be found at www.bmocm.com/economics.

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