Atlantic Momentum Report Warns Nova Scotia Must Address Housing, Energy and Innovation to Sustain Growth
The Atlantic Momentum report, co-authored by the Public Policy Forum's Carole Lee Reinhardt, warns that Nova Scotia faces rising living costs, lagging productivity, and labour shortages. While the province is securing major energy and defence projects, the report urges action on infrastructure, housing affordability, and innovation capacity to retain skilled workers and cement economic gains.
Nova Scotia is landing major projects in energy and defence, but a new assessment warns the province must address deepening structural challenges to sustain its progress. The Atlantic Momentum report, which measures the region's economic performance, was co-authored by Carole Lee Reinhardt, the Atlantic director of the Public Policy Forum. Reinhardt noted that Nova Scotia has lost momentum from where it was in 2024.
According to the report, the province faces critical economic challenges including rising living costs, lagging productivity, and labour shortages that threaten long-term prosperity. Without action, these pressures could drive workers away and discourage investment, leading to weak productivity, rising costs, and declining opportunity.
Energy is identified as a central pillar for future growth. Former Newfoundland and Labrador premier Andrew Furey states in the report that energy should be central to Nova Scotia’s economic strategy. Wind, offshore energy, and other clean energy opportunities are highlighted as potential drivers for investment, skilled jobs, and positioning the province as an energy supplier. Former P.E.I. premier Wade MacLauchlan notes that energy production and transmission should be top priorities for driving growth. However, the report stresses that infrastructure items need to be sorted and upgraded before energy can effectively come out of the province.
Defence spending presents another significant opportunity. Former Nova Scotia premier Darrell Dexter says Halifax is well positioned to benefit from increased federal defence spending. Yet Greg Landry, a Dartmouth-based economist, warns that simply building ships is not enough and Nova Scotia must develop innovation and research capacity. The report cautions that while defence spending can serve as a catalyst, it risks over-dependence on federal contracts if innovation capacity is not built.
Housing affordability has emerged as a pressing competitive disadvantage for Halifax, making it difficult to attract and retain skilled workers. Public Policy Forum co-author Colin Campbell points out that rent is much cheaper in Montreal compared to Halifax. Highlighting the unprecedented housing cost challenges, a developer at an event stated that "the last thing we need in Halifax is more $3,000-a-month rents."
To help communities understand what makes them appealing to potential residents, the report recommends creating an attractiveness index.