P.E.I. is leading the country in employment growth with a 2.6 increase during the first seven months of 2018, according to a recent report from the Atlantic Provinces Economic Council (APEC).
The Atlantic Currents report released earlier this month by APEC said 2018 has thus far seen modest economic gains in Atlantic Canada despite new trade measures.
The report said PE.I. led the Atlantic region on many economic indicators in the first half of 2018, while the small province also has the fastest retail sales in the country.
While housing starts are down four per cent in P.E.I. due to week July numbers, they are still at historically high levels. Housing starts are currently 55 per cent higher than in 2016.
The report noted that Nova Scotia and New Brunswick are both growing below the national rate, while Newfoundland and Labrador’s economy remains the weakest in the region.
P.E.I. has shown solid growth, aided by further gain in employment, according to the report. However, the report also noted some “softening” in housing and exports.
Uncertainty over the North America Free Trade Agreement has dampened investment plans in the overall region.
APEC also estimates that Canada’s countermeasure response to U.S. tariffs on steel and aluminum products will increase the cost of Atlantic Canada’s U.S. imports by at least $18 million.
“While there are no steel and aluminum refineries in Atlantic Canada, there are primary metal and metal fabrication firms that rely on steel and aluminum as key inputs,” said APEC senior policy analyst Fred Bergman.
