Nova Scotia’s business climate ranks 5th
This is the fifth 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.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 | 2003r | 2004 | |
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| Alberta | 2nd | 1st | |
| British Columbia | 3rd | 2nd(tie) | |
| Ontario | 1st | 2nd(tie) | |
| Manitoba | 5th | 4th | |
| Nova Scotia | 4th | 5th | |
| New Brunswick | 6th | 6th | |
| Quebec | 7th | 7th | |
| Saskatchewan | 8th | 8th | |
| Prince Edward Island | 10th | 9th | |
| Newfoundland & Labrador | 9th | 10th | |
r = ranking has been revised to include new indicators and revisions by Statistics Canada. Only 2003 and 2004 statistics are used to determine rankings.
INDICATORS
Development Capacity - Rank 4
Nova Scotia falls to 4th place ranking 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 land cost and highway quality. Improvements were seen in post-secondary education attainment, business loans per employee and sewage treatment.
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| INDICATORS | 2003r | 2004 | |
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| Human Resources | Post-secondary Education Attainment | 2 | 1 |
| High School Attainment | 4 | 4 | |
| Low Education Attainment | 5 | 5 | |
| Skilled Immigrants | 6 | 6 | |
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| Technology Resources | Graduates with Advanced Degrees (replacing Doctorate Graduates) | 3 | 3 |
| Science/Engineering Graduates | 1 | 2 | |
| Patents Granted | 8 | 8 | |
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| Financial Resources | Venture Capital Investments | 7 | 7 |
| Business Loans Per Employee | 7 | 6 | |
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| Infrastructure and Amenities | Health Professionals Per Capita | 2 | 3 |
| Highway Quality | 1 | 3 | |
| Internet Use | 5 | 5* | |
| Land Cost | 4 | 7 | |
| Major Crimes | 6 | 6 | |
| Sewage Treatment | 9* | 8 | |
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| Overall Ranking | Development Capacity | 2 | 4 |
Economic Performance - Rank 7
Nova Scotia's ranking improves to 7th in Canada and 2nd in Atlantic Canada. Economic Performance refers to the strength and growth of the provincial economy. Nova Scotia economic growth continued to grow slowly when compared to the rest of the country. While personal income growth and employment growth improved this was offset by lower GDP growth and lower average annual pay growth.
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| INDICATORS | 2003r | 2004 | |
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| Output | Personal Income Growth | 9 | 8 |
| GDP Growth Rate | 7 | 9 | |
| Personal Income Per Capita | 6 | 7 | |
| GDP Per Capita | 8 | 8 | |
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| Employment Base | Employment Growth | 5 | 1 |
| Unemployment Rate | 6 | 7 | |
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| Earnings and Job Quality | Average Annual Pay Growth | 8 | 10 |
| Average Annual Pay | 6 | 8 | |
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| Equity Rural | Income vs Urban Income | 8 | 7 |
| Low Income | 6 | 3 | |
| Income Distribution | 4 | 2 | |
| % Income Distribution Change | 2 | 2 | |
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| Overall Ranking | Economic Performance | 10 | 7 |
Tax & Fiscal Environment - Rank 4
Nova Scotia’s tax and fiscal environment continues to rank 4th in Canada and 1st in Atlantic Canada. Rankings improved in business subsidies, workers’ compensation premiums and personal income tax. Rankings slipped in government expenditures per GDP. Overall Nova Scotia’s tax & fiscal environment continues to be competitive.
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| INDICATORS | 2003r | 2004 | |
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| Tax Base | Corporate Tax/GDP | 8 | 7 |
| Indirect Tax/Personal Income | 3 | 3 | |
| Personal Income Tax | 9 | 7 | |
| Sales Tax/Personal Income | 8 | 7 | |
| Property Tax/GDP | 3 | 3 | |
| Workers' Compensation Premiums | 7 | 4 | |
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| Expenditures Base | R&D Tax Credits/Businesses | 6 | 6 |
| Business Subsidies/GDP | 3 | 2 | |
| Government Expenditures/GDP | 5 | 6 | |
| Public Debt per Capita | 8 | 8 | |
| Government Employment per Capita | 4 | 4 | |
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| Overall Ranking | Tax & Fiscal Environment | 5 | 4 |
Business Vitality - Rank 5
Nova Scotia continues to rank 5th in Canada and 1st in Atlantic Canada in business vitality. Business vitality refers to the strength of its business sector. Nova Scotia improves in business service employment growth, new business job growth and change in export diversity. Rankings slipped in manufacturing capital investment, electricity cost and change in new companies. Overall business vitality indicators were positive.
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| INDICATORS | 2003r | 2004 | |
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| Existing Business Strength | Manufacturing Capital Investment | 5 | 9 |
| Business Service Employment Growth | 4 | 2 | |
| Manufacturing Salaries/Worker | 7 | 6 | |
| Business Closings | 6 | 5 | |
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| Entrepreneurial Energy | Change In New Companies | 2 | 10 |
| New Business Job Growth | 6 | 4 | |
| Business Immigration | 4 | 3 | |
| New Companies | 7 | 8 | |
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| Structural Diversity | Export Diversity | 6 | 6 |
| Change In Export Diversity | 6 | 2 | |
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| Business Location Competitiveness | Transportation Cost Index | 4 | 4 |
| Labour Cost | 6 | 5 | |
| Housing Cost | 6 | 6 | |
| OH&S Effectiveness (Regulation) | 6 | 8 | |
| Electricity Cost | 7 | 9 | |
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| Overall Ranking | Business Vitality | 7 | 5 |
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 | |||