APEC forecasts slower economic growth due to high interest rates and inflation

The latest Economic Update from the Atlantic Provinces Economic Council says that while the Atlantic economy is off to a good start in 2023 thanks to population and employment gains, economic growth will be slower this year due to high interest rates and inflation. For PEI specifically, APEC says the Island’s rapid economic expansion is slowing as housing pressures escalate and labour participation drops. It adds that retail sales volumes are starting to bounce back from last year as inflation winds down. APEC also says demand for construction work is high on PEI with a variety of projects in development, but the industry is constrained by labour shortages.