Economic Analysis On Economic Growth

1593 Words Apr 8th, 2015 7 Pages
Economic Analysis

Economic growth has been solid in the past four years driven by historically low interest rates. In February 2006, the unemployment rate in was Nova Scotia is 9.5%. The average income is $33,533. Average GDP growth in Nova Scotia has been about 2%, and the inflation rate has been about 2.5%.

Strong economic growth has resulted in higher and increasing interest rates; which slows down the economy, especially the interest rate sensitive real estate industry; as mortgage rates increase, mortgage payments increase; and so houses become less affordable at the same prices. This puts a pressure on house prices to decrease, and so there is a possibility of a crash in the real estate market. A 1% increase in the mortgage rate
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Economic bases in the HRM area are post secondary education, and health care. Post secondary education is expected to continue to expand, thanks to international students, and so will continue to offer jobs and benefit other industries. Health care is benefiting from increasing government funding and the aging population. Immigration will also continue to benefit the HRM region’s economy, with a broad base positive effect.
Strong oil price has benefited Alberta, and has attracted many working age people from the Maritimes to migrate to Alberta.


Building a house of the same quality would cost about approximately $70 per square foot, with GST taxes the price would be $80.5 per square foot. Home builders have the advantage of purchasing materials at lower prices, since they buy at high quantities.

That means it would cost approximately $116,081. The estimate was derived with consultation with home builders in the Bedford area.

The land cost would be about $80,000. Landscaping costs $5,000, driveway pavement would also cost $4,000, and the vinyl costs about $2,400.

This means the total cost of 204,481; which is $4,519 less than the cost of purchasing the house.

Advantages of buying and disadvantages of building a new home:
• You don 't have to pay the GST.
• Unavailability of large vacant lots in the area.
• The risk of any building mistake, or delay could be costly.
• Building materials, as
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