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Economy

A review of the Prince Edward Island Economy in 2005

While the Canadian economy experienced an improved level of growth in 2004, the Prince Edward Island economy slowed down somewhat. Statistics Canada estimates that the Canadian economy expanded by 2.8 per cent in constant dollars following 2.0 per cent growth in 2003. The Island economy grew by 1.7 per cent in 2004, slightly down from the 1.9 per cent growth a year earlier. Economic performance in 2004 was accompanied by positive employment growth, gains in labour income and strong residential construction activity. Weak retail sales, a decline in export activity and lower tourist numbers were moderating factors. The value of Prince Edward Island’s Gross Domestic Product (GDP) at market prices for 2004 is estimated to be $4,000 million.

Statistics Canada’s estimates of GDP by industry indicate that in 2004 the leading growth sectors in the province were: health care and social assistance (up by 5.9 per cent), finance, insurance and real estate services (up by 3.8 per cent), wholesale trade (up by 2.1 per cent) and manufacturing (up by 1.9 per cent).

The general rise in the All-Items Consumer Price Index (CPI) for Prince Edward Island was 2.1 per cent in 2004. Leading factors contributing to this rise were higher prices for energy (up by 8.7 per cent) and tobacco and alcohol (up by 8.2 per cent). In Canada prices increased by 1.9 per cent in 2004.

Employment on Prince Edward Island expanded by 0.9 per cent in 2004 to average 66,700 per month, an all-time high, while total labour income increased by 4.8 per cent. The unemployment rate averaged 11.3 per cent in, up from 11.0 per cent in 2003.

Manufacturing shipments on Prince Edward Island reached an all-time high of $1,414.3 million in 2004, an increase of 4.3 per cent. This compares to 2.2 per cent growth in 2003. According to Statistics Canada, the value of P.E.I.’s exports of goods increased slightly: from $640.5 million in 2003 to $643.9 million in 2004, an increase of 0.59 per cent.

For more information on the Island economy, read the most recent Annual Statistical Review.

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