2024-25 Departmental Results Report - Operating context

In 2024, the Atlantic Canada Opportunities Agency (ACOA) operated in a regional economic environment marked by sustained growth, a resilient labour market, and persistent structural challenges. Atlantic Canada’s real gross domestic product grew by 2.4% in 2024, surpassing the national average of 1.6% thanks to strong performance in the services, manufacturing and construction sectors across several Atlantic provinces. Prince Edward Island recorded the highest provincial growth in the country (3.6%), while Newfoundland and Labrador (2.4%) benefited from a rebound in extractive industries.^{Footnote 1}

Regional exports increased by 5.7% in 2024 compared to 2023, driven by petroleum products, seafood and tires. However, continued reliance on the U.S. market (72.5% of exports) and declining exports to other key markets (e.g., the European Union, China and the United Kingdom) highlight the need to strengthen trade diversification.^{Footnote 2}

The labour market continued to improve, with a net creation of 37,300 jobs (+3.1%) in 2024, mainly in construction, education services and health care. The regional unemployment rate stood at 7.5%, slightly higher than in 2023 but still below pre-pandemic levels.^{Footnote 3}

In terms of labour productivity, the region experienced a fourth consecutive annual decline (-0.7%), reaching $48.30/hour in 2024.^{Footnote 4} This trend is due to faster growth in employment and hours worked than in output, particularly in the Maritimes.

Demographically, Atlantic Canada’s population grew by 1.2% in 2024, reaching over 2.6 million people. Although this growth rate was lower than in 2021 (1.7%), 2022 and 2023 (2.5% each year), it was higher than in any year from 1975 to 2020, suggesting a return to pre-pandemic demographic growth trends. With negative natural growth for the past 10 years (since 2013), the region’s population growth relies entirely on interprovincial and international immigration (permanent and temporary residents) and is beginning to be affected by the new federal immigration plan aimed at reducing the share of temporary residents in the population to 5% by 2027. The number of permanent residents admitted to the region has continued to rise since 2021, while the number of work and study permits issued fell by 13.9% (11,380 permits) compared to 2023,^{Footnote 5} which could lead to a decline in the number of temporary residents in Atlantic Canada if the trend continues. According to Statistics Canada,^{Footnote 6} the total number of non-permanent residents in Atlantic Canada increased by only 2.2% between January 1, 2024 and January 1, 2025, to a total of 120,747 people, compared to nearly 40% growth in the previous period. However, non-permanent residents’ share of the total population in Atlantic Canada remained at 4.5% over the past 2 years, while it reached 7.1% in Canada as of January 1, 2025 (compared to 6.7% on January 1, 2024).

It is worth noting that in its effort to reduce inflation, the Bank of Canada raised its key interest rate to a peak of 5% in July 2023, which remained in effect until April 2024. This had a greater impact on the existing debt of Atlantic Canadian businesses (36.2%) than on Canadian businesses overall (33.3%).^{Footnote 7}

Although businesses in the region performed well in terms of revenue in 2024, there is room for improvement in online sales. According to the Canadian Survey on Business Conditions,^{Footnote 8} more than three quarters of Atlantic Canadian businesses (78%) reported that their 2024 revenues were equal to or higher than in 2023, compared to 68.7% nationally. However, less than 5% of their sales were made online, compared to nearly 7% in Canada.

In terms of consumption, retail sales in Atlantic Canada rose by 3.6% in 2024, driven by lower inflation and the gradual reduction of the Bank of Canada’s key interest rate. Inflation rates in the Atlantic provinces were below the national rate in 2024.^{Footnote 9}

The residential sector also showed a recovery, with a 22.4% increase in housing starts in Atlantic Canada in 2024, supported by public policies favourable to residential construction.

Despite progress in rental housing supply, vacancy rates in the region in 2024 still ranged from 0.8% in Prince Edward Island to 2.0% in Nova Scotia and New Brunswick.^{Footnote 10} Home sales in the region also increased (6.4%) in 2024 but remained below the national average (7.3%).^{Footnote 11}

In this context, ACOA adapted its interventions to support inclusive growth, economic diversification, and the transition to a greener and more resilient economy.