Stronger economic growth results in lower deficit

A provincial economic update and second-quarter budget forecast both contain positive news for Islanders.

The economic update and second-quarter forecast were tabled in the legislature today by Finance Minister Allen Roach. At $7.9 million, the projected 2016-17 deficit is $1.7 million lower than previously forecast due in part to a stronger economy and increases in provincial revenues.

“Our government has an ambitious plan to diversify and grow our economy and that plan is working,” Minister Roach said. “Our strong economic growth and sound financial management demonstrates the kind of fiscal leadership and accountability that Islanders expect from their government.”

The economic update provided information on a number of indicators:

• population growth increased by 1.3 per cent, higher than the national average;
• average weekly earnings are up 2.3 per cent, the second highest in Canada;
• labour income grew by 4.2 per cent, the fastest growth in the country;
• the number of jobs is down by 2.3 per cent, reflecting a 2.0 per cent decline in the labour force;
• there is an increase in part–time employment -- the participation rate remains among the highest in Canada;
• retail sales are up by 5.8 per cent and housing starts are up 19.3 per cent;
• among primary industries, farm cash receipts in the first quarter are up by 3.5 per cent, the value of lobster landings are up by 22 per cent and tourism overnight stays are up by 11 per cent; and
• business and consumer confidence is among the highest in Canada.

“We are working closely with all government departments to ensure we continue to meet our budgetary objectives,” Minister Roach said. “We are well on track to a balanced budget in the upcoming fiscal year.”

For more information, visit  2016 Economic and Fiscal Updates

Media contact:
Wayne MacKinnon
Department of Finance
(902) 314-3407
wemackinnonb@gov.pe.ca