Second Quarter forecast indicates $4.4M surplus
The Second Quarter Forecast for 2018-19 indicates a surplus of $4,354,800, an improvement from the budgeted surplus of $1,474,700.
“Prince Edward Island’s economy has seen solid economic growth over the last number of years and the trend continues into 2018,” said Finance Minister Heath MacDonald. “Good governance and responsible spending is now allowing us to accelerate investments in frontline services that matter most to Islanders like healthcare, education and families.”
This surplus is attained although government increased the Basic Personal Amount and reduced the small business corporate income tax rate, increased contributions to social programs by $9.2 million, are projecting health care expenditures to be $35.5 million higher than last year and increased the budget for education by $10.3 million.
Prince Edward Island’s economy has been expanding every year since 2008, the only jurisdiction in Canada to do so.
For 2018, in comparison to 2017:
- population growth is up 1.8 per cent
- employment growth is leading all provinces, up 3.1 per cent
- total labour income has grown 4.1 per cent
- more Islanders than ever are employed
- manufacturing shipments are up 6.6 per cent
- there is growth in retail sales and residential housing investment, and
- housing starts are up 3.6 per cent.
To read more, visit Second Quarter Forecast and 2018 Economic Update.
Department of Finance