Strong economy helps lower deficit, province says

P.E.I.'s projected deficit is $1.7 million less than previously forecast, Finance Minister Allen Roach said in the legislature Wednesday.

Roach said the projected deficit for 2016-17 is $7.9 million.

• Retail sales rebound on P.E.I.

A stronger economy and increases in provincial revenues helped lower the deficit, he said.

"Our government has an ambitious plan to diversify and grow our economy and that plan is working," Roach said.

Economic update

The finance department's economic update included the following:

• Population growth increased by 1.3 per cent, higher than the national average
• Average weekly earnings are up 2.3 per cent, the second highest in Canada
• Labour income grew by 4.2 per cent, the fastest growth in the country
• The number of jobs is down by 2.3 per cent, reflecting a 2.0 per cent decline in the labour force
• Retail sales are up by 5.8 per cent and housing starts are up 19.3 per cent
• Farm cash receipts in the first quarter are up by 3.5 per cent, the value of lobster landings are up by 22 per cent and tourism overnight stays are up by 11 per cent

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