PEI

P.E.I. heading for another strong year of economic growth, APEC says

2019 is shaping up to be another strong year for P.E.I., according to the Atlantic Provinces Economic Council.

Value of major project spending this year on P.E.I. is up 24 per cent to a record $531 million, council says

Much of the major project spending on P.E.I. is housing construction needed to support a growing population, APEC says. (Reuters)

This year is shaping up to be another strong one for P.E.I., according to the Atlantic Provinces Economic Council.

APEC released its major projects inventory Monday, and it shows P.E.I. and Newfoundland and Labrador leading the region's economic growth.

Patrick Brannon, the director of major projects with APEC, says the value of major project spending on P.E.I. this year is up 24 per cent to a record $531 million.

"That follows a big increase last year, too," he said.

Patrick Brannon says Newfoundland and Labrador will also see strong economic growth, with declines in Nova Scotia and New Brunswick. (LinkedIn)

"A lot of that is because of the strong population growth that P.E.I. has seen and increased housing construction. There's also some other infrastructure to support the growing population that's happening and new industries including cannabis are supporting some growth, as well."

APEC said investment on major projects is expected to increase by five per cent on P.E.I. in 2020 led by a planned wind farm expansion that will see 30 megawatts of renewable power added to the system and increased housing investment.

On Newfoundland and Labrador, spending in 2019 is up by 21 per cent to $6 billion, APEC said. This is largely due to increased expenditures at the Voisey's Bay underground mine and the restart of the Wabush iron ore mine.

Nova Scotia will see a small decline in activity while the drop in New Brunswick is more notable, Brannon said.

APEC's inventory identifies 480 major investment projects in various stages of development throughout Atlantic Canada, with a total value of $141 billion, up three per cent from last year's inventory.

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With files from Angela Walker