Tourism Collapse Outweighs Virus Containment: Prince Edward Island’s Two-Year Outlook—September 2020

The Conference Board of Canada, 12 pages, September 29, 2020
Issue briefing
(You must be signed in and entitled to rate this report)
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

  • Prince Edward Island is currently in the midst of its worst recession on record. Thankfully, the downturn should be short-lived, as the Island has managed to contain the coronavirus through social distancing.
  • Barring a second wave of the virus, we expect P.E.I.s economy to return to trend growth levels by the end of 2021. Still, the second-quarter drop of 15 per cent will be the biggest on record and result in an overall annual contraction of 4.9 per cent in provincial GDP this year.
  • One of the key drivers of growth on the Island is tourism, which, due to border closures, hammered travel-related industries in the second quarter. However, with visitors from the other Atlantic provinces allowed to enter P.E.I. again as of July 3, the tourism industry should begin to pick up over the back half of the year.
  • During economic crises, the government is an essential source of growth and stability. With the release of its delayed spring budget on June 17, the province outlined measures to help mitigate the damage from the COVID-19 pandemic and the resulting recession. As well, it shed light on the impact of the recession on the fiscal situation.
  • Overall, the province expects the deficit to soar to $172 million this fiscal year as a result of stimulus spending and revenues being hampered.

Table of Contents

Key findings

Prince Edward Island snapshot

Tourism collapse outweighs virus containment

Government to the rescue

Tourism takes a major hit

Employment set for worst year on record

Manufacturing hot streak ends abruptly

Construction: the lone bright spot

COVID-19: Get all the insights

To see if you are entitled to get this research for free, take a minute and create a free e-Library account. This will let us determine if someone else at your organization has already purchased access to this material.

Browse by...
Need Help?