This quarterly economic forecast for the province of Prince Edward Island examines the economic outlook for the province, including gross domestic product (GDP), output by industry and labour market conditions.
Document Highlights
Significant population gains will continue to bolster economic activity on the Island, which should allow the province to outpace national growth, a feat that Prince Edward Island has accomplished since 2015.
The influx of new citizens is having knock-on effects on a multitude of industries, including residential construction and transportation, where we expect to see double-digit growth over this year and next.
In addition, manufacturing and exports will continue to see solid growth as P.E.I. products maintain their popularity in international markets.
The recent trend of solid economic growth has led the province to one of its largest fiscal surpluses in decades. However, with this surplus comes the tough decision of what to do with the money; lower taxes, debt repayment, and increased spending are all potentially on the table for the newly elected Progressive Conservative government.
The minority government will have its hands full, however, as following through on party priorities while also trying to appease key seats in the legislature could make for a difficult task going forward.
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