CHARLOTTETOWN, PRINCE EDWARD ISLAND--(Marketwired - May 8, 2013) - Prince Edward Island's economy continues to grow at a modest pace, according to the BMO Blue Book released today by BMO Capital Markets Economics and BMO Commercial Banking. Much like the U.S. Federal Reserve's Beige Book, the BMO Blue Book combines the expertise of BMO's economists with information on current business conditions provided to BMO's commercial bankers by local businesspeople.
"Real GDP is expected to expand 1.5 per cent this year after 1.2 per cent growth in 2012," said Robert Kavcic, Senior Economist, BMO Capital Markets. "Firmer public-sector capital spending will help offset a slowdown in population growth, while exports are poised to improve."
Mr. Kavcic noted that job growth remains solid in the province at 3.6 per cent, year-over-year, in the first quarter, driven by gains in both the private and public sector. "Private-sector gains have been largely in the trade, recreation and accommodation & food sectors - partly tourism related and partly the result of strong recent population growth, though the latter is now fading."
"BMO's commercial clients are looking for a steady year ahead," said Allison Hakomaki, District Vice President, New Brunswick & PEI, BMO Bank of Montreal. "With signs of an ongoing uptick in economic strength in the U.S., export markets for the fishery industry - particularly high-end products like lobster and crab - may be set for improvement."
She also noted that tourism in the province is hopeful of an upswing given renewed U.S. economic growth. Ms. Hakomaki added that BMO is armed with a highly-skilled team of experts that can make lending decisions at the local level to help boost productivity, expand into new markets and make strategic investment decisions that will help propel growth and drive success for local businesses.
Ms. Hakomaki added that BMO is armed with a highly-skilled team of experts that can make lending decisions at the local level to help its commercial clients boost productivity, expand into new markets and make strategic investment decisions that will help propel growth and drive success.
The full BMO Blue Book can be downloaded at www.bmocm.com/economics .
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $542 billion as at January 31, 2013, and more than 46,000 employees, BMO Financial Group provides a broad range of personal and commercial banking, wealth management and investment banking products and solutions.
