Nova Scotia's business climate ranks 6th
This is the fourth edition of Nova Scotia's Business Climate Index. This report monitors and compares Nova Scotia's business-climate ranking nationally and in Atlantic Canada using comparable measures. It assesses general business climate across 53 indicators and ranks the province on each of these relative to other provinces in Canada. Data for the index is compiled primarily from Statistics Canada and is based on the most recent year available.This report builds on the Index from last year and uses additional resources identified from feedback from the federal/provincial business-climate working group and stakeholders.
Many indicators were revised to reflect changes in Statistics Canada data sources and to use more up-to-date information.
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| PROVINCE | 2001r | 2002r | 2003 |
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| Ontario | 2nd | 3rd | 1st |
| British Columbia | 3rd | 2nd | 2nd |
| Alberta | 1st | 1st | 3rd |
| Quebec | 5th | 4th | 4th |
| Manitoba | 6th | 5th | 5th |
| Nova Scotia | 4th | 5th | 6th |
| Saskatchewan | 9th | 9th | 7th |
| New Brunswick | 8th | 8th | 7th |
| Newfoundland & Labrador | 10th | 10th | 9th |
| Prince Edward Island | 7th | 7th | 9th |
r = ranking has been revised to include new indicators and revisions by Statistics Canada. Only 2001, 2002 and 2003 statistics are used to determine rankings.
INDICATORS
Development Capacity- Rank 5
Nova Scotia falls to 5th place in Canada and continues its 1st place ranking in Atlantic Canada in Development Capacity. Development capacity refers to the quality of the social and physical infrastructure supporting economic performance. Nova Scotia's rankings slipped in business loans by chartered banks, and major crimes. Challenges continue in the level of financial resources available to business and the attraction of immigrants.
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| INDICATORS | 2001r | 2002r | 2003 | |
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| Human Resources | Post-secondary Education Attainment | 1 | 3 | 2 |
| High School Attainment | 4 | 5 | 4 | |
| Low Education Attainment | 6 | 6 | 6 | |
| Skilled Immigrants | 6 | 6 | 6 | |
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| Technology Resources | Graduates with Advanced Degrees (replacing Doctorate Graduates) | 3 | 3 | 3 |
| Science/Engineering Graduates | 1 | 1 | 1 | |
| Patents Granted | 7 | 7 | 8 | |
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| Financial Resources | Venture Capital Investments | 6 | 8 | 7 |
| Business Loans Per Employee | 6 | 6 | 7 | |
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| Infrastructure and Amenities | Health Professionals Per Capita | 3 | 3 | 2 |
| Highway Quality | 2 | 2 | 1 | |
| Internet Use | 5 | 5 | 5 | |
| Land Cost | 4* | 4* | 4* | |
| Major Crimes | 4 | 5 | 6 | |
| Sewage Treatment | 9* | 9 | 9* | |
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| Overall Ranking | Development Capacity | 4 | 4 | 5 |
Economic Performance - Rank 10
Nova Scotia's ranking falls to 10th in Canada and 4th in Atlantic Canada. Economic Performance refers to the strength and growth of the provincial economy. Nova Scotia economic growth slowed when compared to the rest of the country resulting in poorer rankings in real GDP growth, personal income and average annual pay growth. Employment growth and the unemployment rate improved.
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| INDICATORS | 2001r | 2002r | 2003 | |
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| Output | Personal Income Growth | 5 | 2 | 8 |
| GDP Growth Rate | 1 | 4 | 10 | |
| Personal Income Per Capita | 6 | 6 | 6 | |
| GDP Per Capita | 7 | 8 | 8 | |
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| Employment Base | Employment Growth | 6 | 7 | 5 |
| Unemployment Rate | 7 | 7 | 6 | |
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| Earnings and Job Quality | Average Annual Pay Growth | 4 | 2 | 9 |
| Average Annual Pay | 6 | 6 | 6 | |
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| Equity Rural | Rural vs Urban Income | 5 | 3 | 8 |
| Low Income | 6 | 5 | 5 | |
| Income Distribution | 6 | 6 | 5 | |
| % Income Distribution Change | 4 | 5 | 2 | |
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| Overall Ranking | Economic Performance | 4 | 3 | 10 |
Tax & Fiscal Environment - Rank 4 (tie)
Nova Scotia's tax and fiscal environment ranks 4th (tie) in Canada and continues to rank 1st in Atlantic Canada. Rankings improved in business subsidies and property tax per GDP. Rankings slipped in sales tax per GDP and indirect tax per personal income. Overall Nova Scotia's tax & fiscal environment continues to be competitive but is trending down.
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| INDICATORS | 2001r | 2002r | 2003 | |
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| Tax Base | Corporate Tax/GDP | 4 | 7 | 6 |
| Indirect Tax/Personal Income | 2 | 2 | 3 | |
| Personal Income Tax | 9 | 9 | 9 | |
| Sales Tax/Personal Income | 6 | 6 | 8 | |
| Property Tax/GDP | 4 | 4 | 3 | |
| Workers' Compensation Premiums | 8 | 8 | 7 | |
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| Expenditures Base | R&D Tax Credits/Businesses | 6 | 7 | 6 |
| Business Subsidies/GDP | 2 | 4 | 1 | |
| Government Expenditures/GDP | 5 | 5 | 5 | |
| Public Debt per Capita | 8 | 8 | 8 | |
| Government Employment per Capita | 3 | 4 | 4 | |
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| Overall Ranking | Tax & Fiscal Environment | 4 | 5 | 4 (tied) |
Business Vitality - Rank 9
Nova Scotia's rank drops to 9th in Canada and 4th in Atlantic Canada in business vitality. Business vitality refers to the strength of its business sector. Nova Scotia improves in electricity cost and new companies. Rankings slipped in work place safety, transportation cost and the business service sector employment growth.
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| INDICATORS | 2001r | 2002 | 2003 | |
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| Existing Business Strength | Manufacturing Capital Investment | 2 | 2 | 7 |
| Business Service Employment Growth | 8 | 6 | 8 | |
| Manufacturing Salaries/Worker | 6 | 7 | 7 | |
| Business Closings | 7 | 7 | 6 | |
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| Entrepreneurial Energy | Change In New Companies | 8 | 9 | 2 |
| New Business Job Growth | 2 | 5 | 6 | |
| Business Immigration | 4 | 4 | 4 | |
| New Companies | 6 | 9 | 7 | |
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| Structural Diversity | Export Diversity | 5 | 5 | 5 |
| Change In Export Diversity | 9 | 3 | 6 | |
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| Business Location Competitiveness | Transportation Cost Index | 4 | 6 | 6 |
| Labour Cost | 6 | 6 | 6 | |
| Housing Cost | 6 | 7 | 6 | |
| OH&S Effectiveness (Regulation) | 4 | 6 | 6 | |
| Electricity Cost | 9 | 9 | 7 | |
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| Overall Ranking | Business Vitality | 8 | 9 | 9 |
r = ranking has been revised to include new indicators and revisions by Statistics Canada * not included in calculating the overall ranking; comparable data not available | ||||
