Overview of Nova Scotia’s economy, Canada

Nova Scotia has a diversified economy based on both land and sea resources. Traditional industries such as fishing, forestry, and mining are in decline, while tourism and other service industries are becoming much more significant components of the economy.

1. Key Nova Scotia’s economic sector

1.1. Agriculture, forestry, and fishing

Farming has tended to focus on dairy products, livestock, poultry and eggs, and fruit. Extensive forestry resources supply large pulp and paper mills, numerous sawmills, and the expanding Christmas tree and maple syrup industries.

The catching, processing, and exporting of fish continue as important but declining industries. The near-complete destruction of cod stocks has decimated this traditional component of the fisheries. However, lobster, scallops, and other shellfish, along with haddock and herring, remain important catches in Nova Scotian waters. Aquaculture is an increasingly significant facet of the fishing industry.

See more Nova Scotia program – Canada

1.2. Resources and power

Mining is another major industry in Nova Scotia. Traditionally, coal was the leading mined product, but many coal mines closed in the late 20th and early 21st centuries. Salt and anhydrite production meet a wide demand, and the provincial gypsum deposits yield about three-fourths of Canada’s supply. There are significant resources of barite and construction materials, such as sand and gravel. The continent’s first tidal energy project, completed in 1984 near Annapolis Royal, harnesses the tides of the Bay of Fundy to enhance the province’s hydroelectric energy output. Natural gas is pumped from wells located off Sable Island and carried to the mainland via pipeline.

1.3. Manufacturing, services, labour, and taxation

Food processing, wood- and paper-related industries, metal production, and many smaller industries provide a solid manufacturing base to the provincial economy. However, most of the labour force is employed in public and private services. Tourism is a particularly strong service industry, with more than a million people visiting the province each year. More than one-fourth of provincial workers are employed in knowledge-based service industries, such as telecommunications, computer technology, and education. In fact, more Nova Scotians work as teachers and university professors than as fish-processing, forestry, and construction workers combined. Also significant for the economy are several Canadian Forces military bases located within the province.

Provincial income is derived from two main sources: various provincial taxes and fees and the federal government. Important taxes levied by the province include personal and corporate income taxes, a sales tax, and a fuel tax.

1.4. Transportation and telecommunications

Shipping remains a major enterprise in Nova Scotia. Point Tupper accommodates the world’s largest oil carriers, and Halifax, a railroad terminus and year-round ice-free port, has facilities for all types of vessels, including huge container ships. Other transportation needs are served by a network of paved highways, by a trucking industry that has largely displaced local rail service, and by an international airport at Halifax and several smaller airports. Car and passenger ferries operate between Nova Scotia and ports in New Brunswick, Prince Edward Island, Newfoundland and Labrador, and the U.S. state of Maine.

Nova Scotia has a highly developed, fully digital telecommunications system that features a provincewide fibre-optic network. Cellular telephone service and high-speed Internet access are widely available.

2. Why Nova Scotia, Canada?

Looking to invest or expand in North America? Discover all of the advantages of investing in Nova Scotia, Canada.

Canada’s strong and stable economy, well-educated labour force, sound fiscal position, and effective environmental policies rank the country as a top jurisdiction for foreign direct investment (FDI).

#1 for starting businesses:

Canada is the easiest place to start a business in the G20, according to the World Bank.

#1 for educated workforce:

Canada has the most educated talent pool in the OECD.

#1 for FDI flows:

Canada attracted the most FDI flows per capita in the G7 in 2007-2016, as reported by the United Nations Conference on Trade and Development (UNCTAD).

#1 for market access to Europe:

With the provisional implementation of the Comprehensive and Economic Trade Agreement (CETA), businesses in Canada now enjoy preferential access to a global market with a combined GDP of US$ 41.4 trillion.

Located on Canada’s east coast, Nova Scotia offers companies unique operating benefits and advantages. As a result, world-leading companies, such as NTT Data and Mitsubishi UFG, are locating and expanding in Nova Scotia, Canada, and benefitting from:

Strategic geographic location close to the United States and Europe with world-class infrastructure
Highly skilled and educated workforce
Competitive business costs and one of the most generous R&D tax incentives in the industrialized world
Enviable quality of life featuring public healthcare, clean air, and waterways
Growing industry sectors including Information Communication Technology, Oceans, Financial Services, and Digital Media among others.

2.1 Strategic location

Extend your reach to key markets

Save time and money. Access North American and European markets.
Our strategic location on Canada’s east coast, including modern infrastructure, multi-modal transportation, logistic assets, and global reach attracts investment from around the world.

2.2 Low business costs

Competitive business costs contribute positively to your bottom line

Nova Scotia has a significant advantage over other locations as business costs are typically lower. KPMG ranked Halifax 6th among 108 mature markets in its 2016 International Business Cost Competitiveness Study.
Additionally, we offer one of the most generous R&D tax incentives in the industrialized world, driving innovative advancements.

2.3 Business incentives

Attractive business incentives can help your company excel

Locate or expand your business in Nova Scotia and take advantage of our generous incentive programs. We have incentives to meet your needs that give your company a financial boost.

2.4 Educated workforce

Attract workers with the skills you need

With the highest number of universities per capita, Nova Scotia is Canada’s university capital. You’ll find the talent you need in Nova Scotia, home to one of the world’s most highly educated, skilled and reliable workforces. Read more about Education in Nova Scotia, Canada

2.5 An ocean lifestyle

Where people want to live and work

No matter where you are in Nova Scotia, you are never far from the ocean. The commercial heart of Halifax is on the water and there is no shortage of beautiful beaches and scenic coastal villages.
Enjoy an affordable cost of living, and excellent recreational and cultural amenities. Learn more about Nova Scotia’s quality of life.

2.6 Sector opportunities

Nova Scotia provides competitive advantages for investors and has one of the most diverse economies in Canada with many strong industry sectors including: