How did Canadian Confederation affect Halifax’s economy?

Canadian Confederation in 1867 had a significant negative impact on the economy of Halifax. Prior to this union, Halifax had evolved into a thriving international import-export center, bolstered by its natural harbour and mid-19th-century railway connections, which established it as a regional hub for finance, wholesaling, and manufacturing.1

Following Confederation, the federal government implemented protectionist policies to address a global recession, which decimated the international trade that served as the cornerstone of the city's economy. Furthermore, the integration into the national economy led to a loss of local financial, wholesale, and manufacturing functions. These sectors were largely absorbed through mergers, buyouts, and takeovers by firms based in Montreal and Toronto. This shift toward economic dependency on central Canada became a defining challenge for the region in the post-Confederation era.12