Prince Edward Island's economic outlook stable, says RBC
Economics
TORONTO, October 13, 2006 — According to the
latest provincial economic outlook by RBC, Prince Edward Island's
economic outlook is expected to grow by 2.1 per cent in 2006
and 1.9 per cent in 2007.
"Prince Edward Island has settled into a pattern of
about two per cent growth every year since 2003," said
Craig Wright, vice-president and chief economist. "Going
into 2007, PEI will be the slowest growing province and as
the only province still in deficit, fiscal policy is unlikely
to ignite stronger growth prospects."
According to the report, PEI's weakness in economic growth
is widespread as measured by bottom- of- the- pack rankings
for trend growth in employment, retail sales, building permits,
home resales and manufacturing shipments. The province has
the second highest unemployment rate behind only Newfoundland
and Labrador.
However, RBC notes, there are economic bright spots including
infrastructure spending, home building activity, a recovery
in the fishing industry, and investments related to the Renewable
Energy Act's goal of having all electricity needs met through
renewable sources within nine years.
For the overall Canadian economy, RBC has revised its 2006
growth forecasts downward with Ontario being sharply downgraded
to last place among the provinces. Alberta and British Columbia
are now in first and second place respectively, bumping Newfoundland
and Labrador to third place for growth in 2006.
The RBC Economics Provincial Outlook assesses the
provinces according to economic growth, employment growth,
unemployment rates, personal income growth, retail sales,
housing starts and the Consumer Price Index.
- 30 -
For more information contact:
Craig Wright, RBC Financial Group Economics,
(416) 974-7457
Derek Holt, RBC Financial Group Economics,
(416) 974-6192
Beja Rodeck, RBC Media Relations,
(416) 974-5506
|
