“The economy in 2005 is benefiting from a robust non-residential construction sector and positive employment growth,” said the Minister. “Growth expectations for the provincial economy this year have improved since Budget.”

Provincial Treasury forecasts that the Prince Edward Island economy will expand in the order of 2.0 per cent in 2005, a slight improvement from the 1.8 per cent estimate published in the 2005 Provincial Budget. According to the latest GDP estimates from Statistics Canada, the local economy increased by 1.8 per cent in 2004 and 1.5 per cent in 2003.

The upward revision to the province’s economic prospects for 2005 reflects better than expected growth in employment and retail spending. The P.E.I. economy in 2005 is supported by a strong non-residential construction sector, increased manufacturing activity and export growth. Factors moderating growth in 2005 include a slowdown in housing construction and a reduction in potato production.

Growth of the Canadian economy is estimated at 2.8 per cent for 2005.

The Provincial Treasurer provided an update on the Province’s fiscal position for 2004/05 and 2005/06. “I am pleased to report that we expect to exceed our 2004/05 budget targets by $6 million,” said the Minister. “Second Quarter results for 2005/06 remain on target.”

Copies may be obtained from Island Information Service – telephone, 902-368-4000 or 1 800 236-5196; fax 902- 368-5544.