Atlantic Canada’s home-buyer purchasing power is set to enjoy a significant boost from economic growth this year, largely propelled by service-sector stability, rising exports, and growing oil production.
In its recent analysis, the Conference Board of Canada said that all four provinces in the region will benefit from accelerated growth in 2019, with Prince Edward Island’s economy being the stand-out performer as its predicted 3.2% growth will outstrip the rest of the country.
P.E.I.’s intensified residential construction activity due to an “influx of international migrants” is also contributing to its robustness.
“Over the next two years, the Island should outpace nearly every other province in the country when it comes to its rate of population growth. Consequently, the construction industry is set to surge this year, thanks to new housing developments on the Island,” the Board stated, as quoted by The Canadian Press.
“Add to that the impressive tourism prospects and the elevated demand for P.E.I. products boosting exports and manufacturing, and economic growth in the province should continue to outpace the Canadian average -- a feat that P.E.I. has achieved every year since 2015.”
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The Board also cited service-sector stability and growing export volume as boost factors for New Brunswick (economy predicted to expand 1.4% this year and 1.3% next year) and Nova Scotia (1.6% growth in 2019 and 2.1% in 2020).
Meanwhile, rising oil production will contribute to Newfoundland and Labrador’s renewed robustness, which is likely to lead to 2.7% economic growth this year.
“The labour market will continue to struggle as baby boomers retire, projects come to the end of their life cycles, and workers in the service sector migrate to other provinces where their skills are in high demand,” the report explained, adding that Newfoundland’s growth might shrink to 1% next year as a result of these trends.