2020-21 Departmental Plan
Operating Context

2020-21 Departmental Plan

 

Over the long term, economic growth in Atlantic Canada will be driven by a combination of factors: the development of emerging and value-added sectors such as oceans, food, clean technology and tourism; the development of innovative products and services; and global economic developments, including greater access to international markets. The Atlantic region is producing goods and services at the maximum possible level given the capacity of existing plants and availability of labour. As a result, the Atlantic economy will grow modestly in 2020 and 2021, but growth will remain below the national level.

The region’s economy continues to face several risks. Because of the region’s small, open economy, international competition from low-cost producers will challenge Atlantic Canada’s manufacturing base and resource industries. Trade tensions between the United States and China, uncertainty surrounding Brexit, and subdued demand for goods across advanced and emerging economies could also negatively affect Atlantic exporters in the near term. The ongoing Canada-United States softwood lumber dispute is also creating uncertainty for Atlantic Canada producers.

Furthermore, changing demographics and a shrinking labour force will have an impact on Atlantic businesses, preventing them from both growing and meeting the needs of their clients. The attraction, retention and integration of immigrants, including international students, will be key for Atlantic firms to meet their labour needs over time. An increase in the participation rate of under-represented groups in the labour force, such as women, youth, Indigenous peoples and persons with disabilities, would also support Atlantic firms in meeting their labour requirements.

The above factors also require businesses in Atlantic Canada to become more innovative. The adoption of advanced manufacturing and other technologies will be a key determinant for increasing the region’s competitiveness, productivity, innovation capacity and economic growth over the long term.

Atlantic Canadian companies have traditionally been challenged in securing investments in part due to the rural nature of the region, resistance from traditional funding lenders, and the risky nature of some projects. The Atlantic Canada Opportunities Agency’s (ACOA) role is to help these Atlantic Canadian businesses obtain funding and create local job opportunities. However, there are always risks associated with any business investments. In order to help build a strong, innovative Atlantic economy, ACOA makes investments that help new and growing Atlantic Canadian businesses adopt/adapt/pursue innovative technologies, secure other financing to execute their plans, be globally competitive and find new export markets, for example. While there may be times when a company does not experience the success anticipated by its owners, ACOA takes its obligation seriously in the management of grants and contributions that are business-focused and achieve results for taxpayer dollars.

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