Provincial Outlook Economic Forecast: Prince Edward Island—Summer 2019
The Conference Board of Canada, 49 pages,
August 24, 2019
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.
- Economic activity in Prince Edward Island will continue to outpace national growth with significant population gains remaining the engine of growth in the province.
- The surge in international migration is greatly benefiting the provincial economy. The increased demand for new housing will propel the construction and transportation Industries to double-digit growth over 2019 and 2020.
- Despite headwinds from the global trade war, Island exports and manufacturing should remain stable and reliable sources of growth for the province due to the continued popularity of P.E.I. products in international markets.
- The recent surge in government revenues left the newly elected government plenty of options to pursue in their first budget. The budget sought wide appeal across all parties and, therefore, included mostly uncontroversial policies.
- The latest budget raised the basic personal tax exemption and the spending on health care and education; lowered the small business tax and the low-income threshold; and passed with 23 of 25 votes in July.