Housing starts are at record-high levels
The latest edition of the Atlantic Currents study from the Atlantic Provinces Economic Council (APEC) has stated that for the first 7 months of the year, Prince Edward Island was the region’s strongest performing market in multiple economic indicators.
PEI employment showed a steady 2.6% growth in that time frame, with retail sales showing similarly strong results, The Journal Pioneer reported.
And despite housing starts shrinking by 4% due to some market weakness in July, new home construction still reached a historically high level – 55% higher than 2016.
Read more: Amid strong immigration, PEI housing starts blaze with activity
However, uncertainty surrounding NAFTA has disrupted investment plans for the region, a situation that might prove detrimental to local economies in the long run.
Canada’s response to U.S. steel and aluminium tariffs is estimated by APEC to 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 reply on steel and aluminum as key inputs,” APEC senior policy analyst Fred Bergman said.
