20th Century

The provincial government, controlled by the Liberal party 1884–1923, was concerned chiefly with development of mining, fishing, and agriculture, and later, with education and various social issues. The government also encouraged railway and highway construction. During World War I, expanding markets for fish, lumber, iron, and steel stimulated the economy. A postwar slump, however, began in 1920 and lasted longer in the Maritime Provinces than anywhere else in Canada. Recovery was halted by the depression of the early 1930's.

World War II, like World War I, spurred economic development. Mining, particularly of coal, was greatly increased. Despite shipping problems and shortage of workers, farm production rose. After the war, mining continued to flourish, and tourism became an important industry for Nova Scotia. The provincial government made a concentrated effort in the 1960's to strengthen and diversify the economy, and by the 1970's Nova Scotia had succeeded in boosting its employment, production, and overall income. In the 1980's, significant deposits of petroleum and natural gas were discovered; development began in the early 1990's.

Other sources of revenue for Nova Scotia in the 1990's and 2000's, in addition to the production of natural gas, included the Port of Halifax; casinos, which were legalized in 1995; and tourists. However, economic problems also surfaced in the province in the 1990's, mostly as a result of decreased funding from the federal government. Many fishers were also out of work because cod was overfished in the area.