PEI continues to be among Canada’s leaders in economic growth

The 2025 Annual Statistical Review shows that Prince Edward Island had the second fastest growing provincial economy in the country last year, with real GDP increasing by 2.8 per cent. 

PEI has exceeded national growth in 10 of the last 11 years, in large part due to the hard work and productivity of the private sector. Key highlights include:

  • Goods-sector employment increased 3.9 per cent
  • Retail sales are up 2.2 per cent
  • Private sector investment (capital expenditures) is up 10.2  
  • Manufacturing was PEI’s second-largest industry in 2025, making up 12.6 per cent of GDP and manufacturing shipments for 2025 were up 9.0 per cent
  • Tourism room nights sold are up 10.5 per cent

“Despite ongoing global pressures and national economic challenges, PEI continues to show strong economic growth. This annual review provides a clear picture of our province’s economic health and offers reliable data to support informed decision-making as we continue to grow and respond to the evolving needs of our communities.”

-Finance and Affordability Minister Jill Burridge

Notable successes for PEI in 2025 include:

  • Population increased by 1.6 per cent to a total of 182,657 as of July 1, 2025
  • Employment averaged a new all-time high of 93,500
  • Total labour income increased 6.4 per cent to $5.7 billion
  • Housing starts increased 4.4 per cent for a total of 1,769, the most starts on PEI since 1973
  • International exports increased 1.8 per cent to an all-time high of $2.6 billion
  • PEI’s Consumer Price Index showed inflation was 1.4 per cent in 2025, down from 1.8 per cent in 2024; along with Newfoundland and Labrador, this was the lowest inflation rate among provinces.

The Annual Statistical Review gathers data from provincial government departments, the private sector, and Statistics Canada to provide a socio-economic snapshot of PEI and includes over 100 data tables on various topics.

To read the full review, visit Annual Statistical Review. 

 

Media contact:
Janice Fogarty
Department of Finance & Affordability
jefogarty@gov.pe.ca

 

Backgrounder

2025 Annual Statistical Review Highlights

  • 2025 GDP increased by 2.8 per cent (real GDP by industry), the second fastest growing economy in Canada in 2025. PEI’s GDP growth has exceeded national growth in 10 of the last 11 years.
  • Island population as of July 1, 2025 was 182,657, an increase of 1.6 per cent over 2024; the second highest growth among provinces and territories.
  • Employment averaged 93,500, an increase of 1.1 per cent over 2024 and a new all-time high.
  • The unemployment rate averaged 8.0 per cent in 2025, no change from 2024.
  • Total labour income increased by 6.4 per cent, following a rise of 7.7 percent in 2024, to reach $5.7 billion.
  • International exports increased by 1.8 per cent, to reach an all-time high of $2.6 billion.
  • Housing starts totaled 1,769, an increase of 4.4 per cent and the most starts in PEI since 1973.
  • The All-Items Consumer Price Index for PEI showed inflation was 1.4 per cent in 2025, down from 1.8 per cent in 2024. Along with Newfoundland and Labrador, this was the lowest inflation rate among provinces.
  • After leading the country in inflation in 2021 and 2022, PEI had the lowest inflation in 2023 and 2025, and the third lowest in 2024.
  • 2025 lobster landings were 45.0 million pounds (down 4.1 per cent) and valued at $354.9 million (down 1.0 per cent). 
  • Farm cash receipts valued $835.0 million, a decrease of 0.7 per cent compared to 2024.
  • Retail sales increased by 2.2 per cent to reach an all-time high of $3.6 billion.
  • New motor vehicle sales in 2025 numbered 8,963 (up 5.4 per cent) and valued $412.8 million (up 4.6 per cent).

 


 

 

 

 

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