CHARLOTTETOWN, Feb. 15 /CNW/ - Although consumer spending will slow in
2008, it will continue to be one of the bright spots for PEI, helping to
offset sluggish manufacturing activity, according to a provincial economics
outlook released today by BMO Financial Group.
"Housing starts are tracking below levels from a year ago, but consumer
activity is robust, helped by personal income tax cuts," said Doug Porter,
Deputy Chief Economist, BMO Capital Markets. Mr. Porter added that a strong
loonie should put a damper on tourism as Canadians increasingly head south of
Highlights of the report include:
- GDP growth should slow to 1.5 per cent this year and then rise to
1.9 per cent in 2009.
- Housing starts are expected to total 1,200 over the next two years.
- Unemployment rate expected to increase slightly to 10.4 per cent in
2008 and 10.7 per cent in 2009.
- Reflecting an increase in capital investment and borrowing on behalf
of Crown corporations, total borrowing requirements are forecast to
be $171 million.
The complete report can be found at www.bmocm.com/economics.
For further information:
For further information: Lucie Gosselin, firstname.lastname@example.org, (514)
877-8224, Internet: www.bmo.com