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HALIFAX, NOVA SCOTIA--(Marketwired - May 4, 2015) - According to the BMO Blue Book released today by BMO Capital Markets Economics and BMO Commercial Banking, economic growth in Nova Scotia should come in ahead of the national average for the first time since 2009.

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 fall in the price of oil and gas provides Nova Scotia with both challenges and opportunities," said Carolyn Booth, Senior Vice President, Atlantic Provinces Division, BMO Bank of Montreal. "Many Nova Scotian workers are returning from Western Canada, which has provided relief to Nova Scotia's labour market which has long experienced a shortage of skilled workers. Additionally, despite lower energy prices, two key oil and gas corporations intend to continue with their multi-billion dollar explorations of Nova Scotia's offshore."

Real GDP is expected to grow 1.9 per cent, up from a 1.6 per cent pace in 2014, according to Robert Kavcic, Senior Economist, BMO Capital Markets. "That growth rate would be the top in Atlantic Canada."

Irving Shipbuilding's $25 billion contract to build combat ships for the Royal Canadian Navy through 2030 will provide support with production expected to begin later this year, noted Mr. Kavcic. "Exports also stand to improve further in the year ahead, after production from the Deep Panuke natural gas project boosted shipments early in 2014. Non-energy exports are holding above year-ago levels, with auto parts up nearly 10 per cent year over year in the latest three months. Additionally, offshore exploration activity is picking up, with BP/Shell set to spend roughly $2 billion in the coming years."

"The province has been looking forward to reaping the benefits of the Irving Shipbuilding contract. While the full impact won't be felt until next year, subcontractors are now starting to see the paybacks, with building construction for the project under way," added Ms. Booth.

Nova Scotia's population has faded since peaking in mid-2011, though growth has again turned modestly positive recently. "One factor is a turnaround in interprovincial migration flows, which had been largely to Alberta, alongside the slide in oil prices," stated Mr. Kavcic. "We suspect outward migration could cease altogether in 2015."

Ms. Booth noted that BMO's team of experts is here to help customers in the region make decisions to boost productivity, enable them to expand into new markets and make strategic investment decisions that will propel growth and drive success.

The full BMO Blue Book can be downloaded at www.bmocm.com/economics.

About BMO Financial Group

Established in 1817, BMO Financial Group is a highly diversified financial services provider based in North America. With total assets of approximately $672 billion as of January 31, 2015, and more than 46,000 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, Wealth Management and BMO Capital Markets.