Think-tank sounds the alarm about Atlantic Canada’s financial futurePublished Apr 08, 2025 • Last updated 6 hours ago • 1 minute readThe Fraser Institute says economic and demographic factors make the Atlantic provinces more vulnerable than others in Canada regarding their financial futures. Photo by File /Brunswick NewsAll four Atlantic provinces are financially unsustainable, says a report published Tuesday by the Fraser Institute think-tank that points to “several risks that threaten to make their fiscal situations even worse.” “Across Canada, most provinces have fiscal challenges but there are several reasons to be particularly worried about the fiscal future in the Atlantic region,” Ben Eisen, senior fellow at the Fraser Institute and co-author of Atlantic Canada’s Precarious Public Finances 2025 Update, said in a news release. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY.Subscribe now to access this story and more:Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsSUBSCRIBE TO UNLOCK MORE ARTICLES.Subscribe or sign in to your account to continue your reading experience.Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsRegister to unlock more articles.Create an account or sign in to continue your reading experience.Access additional stories every monthShare your thoughts and join the conversation in our commenting communityGet email updates from your favourite authorsSign In or Create an AccountorArticle contentThe study finds that the region’s four provinces are forecasted to experience rising government debt as a share of the economy unless there are policy changes. The institute says unique economic and demographic factors make the Atlantic provinces more vulnerable than others in Canada. They include greater dependency on fiscal transfers from Ottawa, with Prince Edward Island, New Brunswick and Nova Scotia all receiving between 33 and 39 per cent of provincial revenue from the federal government. An aging population is also considered problematic, with the Atlantic provinces having the four highest shares of people 65 or older in the country, increasing health-care costs and reducing the labour force participation rate. The debt charges of Nova Scotia, Newfoundland and Labrador and P.E.I., relative to revenue, are three of the five highest in the country, and comparatively high tax rates in all four Atlantic provinces leave less room in the future to raise tax rates to meet immediate spending commitments. Article content
Think-tank sounds the alarm about Atlantic Canada’s financial future
