What’s driving P.E.I.’s economy?

P.E.I.’s trade and tourism sectors will benefit from U.S. economic growth and a weaker Canadian dollar, says a BMO report.

“Prince Edward Island continues to modernize its economy while maintaining tourism, agriculture and the fishery as economic pillars,” says Carolyn Booth, senior vice president of BMO’s Atlantic region.

She adds, “Businesses are establishing world-class expertise in aerospace, pharmaceutical, chemical, and bioscience industries. These industries combined have experienced 300% growth since 2007 and are expected to reflect additional growth in the years ahead.”

Read: Poorer provinces favoured by feds

P.E.I.’s 2014 real GDP will drop slightly from 1.4% in 2013 to 1.3% this year, says Robert Kavcic, a senior economist at BMO Capital Markets.

The province’s exports were strong in 2013, and 2014 is already exceeding last year’s levels, says Kavcic. The increase is led by aerospace shipments and higher exports of farm, fish and food products.

Read: Canada could become “food-exporting superpower”

“The drop of the Canadian dollar is expected to increase foreign demand and make exports even more attractive. Furthermore, increased efforts to market these products more aggressively in traditional markets like the United States and Europe and to emerging Asian markets should foster global demand,” says Allison Hakomaki, Atlantic region vice president of Commercial Banking at BMO.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.