A stronger U.S. economy and weaker loonie should help exporters, says the Atlantic Provinces Economic Council in a new report that predicts modest growth throughout the region next year.

But the independent think-tank's annual economic outlook released Monday also warns of global factors that could wipe out even those projected gains.

"Aside from geopolitical tensions, the potential for a renewed recession in the euro area and increased financial volatility as U.S. monetary policy begins to tighten are significant risks to growth in 2015," it says.

Nova Scotia is expected to lead the pack, with gross domestic product forecast to grow about 1.9 per cent as spending ramps up for the federal shipbuilding project.

In New Brunswick, the report says government capital spending will contribute to a projected GDP increase of 1.7 per cent.

Growth in Newfoundland and Labrador and P.E.I. is predicted at 1.5 and 1.4 per cent, respectively.

Consumer spending is likely to remain modest across the region as job creation stalls, says the report. Sluggish housing starts are also expected.

"Overall growth is still fairly subdued," David Chaundy, the council's senior economist, said from Halifax.

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