On May 1, Statistics Canada released information on the real gross domestic product (GDP) rates for 2016. Results showed that the GDP has increased in eight provinces and two territories. Of the eight provinces who experienced growth, PEI saw the third highest GDP increase at 2.4% – almost double that of the national average. This is the strongest growth the province has experienced in 10 years.
“The Chamber is encouraged by these results. This growth is a testament to the astute business leaders and entrepreneurs in the province, the positive effects of immigration, and the alignment of efforts by the business community and governments at all levels,” said Pam Williams, President of the Greater Charlottetown Area Chamber of Commerce “With this success there comes an opportunity to establish for Island businesses a more competitive playing field when it comes to the tax regime. Island business owners pay among the highest small business and corporate tax rates in the country. Lowering these tax rates would ensure Island businesses can continue to increase GDP, being more competitive regionally, nationally, and internationally, and affording them the opportunity to grow their businesses.”
Sector highlights include:
- Overall, goods-producing industries increased by 3.2%.
- Wholesale trade increased by 3.9%.
- Manufacturing grew 3.7%, led by growth in food and aerospace
- Retail trade grew 3.2%, largely from stronger sales of motor vehicle and parts dealers.
- Construction increased 9.3%, helped by the new power cable project. Building construction increased in both non-residential (+12%) and residential (+4.5%)
- Services-producing industries – which make up 70% of the PEI economy – grew at 2.1%, with gains in most subsectors
- Finance and insurance industries increased 3.6%, led by banking and financial investment services.
- Offices of real estate agents and brokers increased 21%, driven by record sales of residential properties.
- Tourism (accommodation and food services) rose 4.2%
- Transportation and warehousing increased 4.2%
- Crop production increased 3.8% on both greater yield and quality
- Aquaculture output increased, although there was a lower lobster catch
The Greater Charlottetown Area Chamber of Commerce serves as the “Voice of Business” on economic issues for its 975 members, representing more than 17,500 employees in small, medium and large enterprises in the capital region.
Penny Walsh McGuire
Greater Charlottetown Area Chamber of Commerce
Phone: 902-628-2000 x 227