Nova Scotia’s real GDP is expected to rebound by 4.4 per cent in 2021 and another 2.1 per cent in 2022. Tighter restrictions implemented during the third wave of the pandemic slowed down the robust economic recovery pace seen during the first four months of 2021. As the province is now ahead of its vaccine rollout schedule, the economic reopening expected in the second half of this year is more promising, which will support the rebound of services exports.
In Recovery Slowed by the Third Wave: Nova Scotia’s Two-Year Outlook, we forecast that elevated government spending will continue to be a bright spot for the province’s economic recovery. The ramp-up of a few major healthcare redevelopment projects this year and next will also support the province’s construction activities. Housing market resilience, coupled with the ramp-up of the $10-billion Goldboro Liquefied Natural Gas project, will brighten the province’s investment outlook in 2022.