Wind power will drive P.E.I. to some of the biggest economic growth in the country, says the Conference Board of Canada, but the Atlantic Canada Economic Council says employment will hold growth back.
The Conference Board has P.E.I. third in the country for growth - with a 3.3 per cent rise in gross domestic product - behind Newfoundland and Labrador and Saskatchewan. Economist Marie Christine Bernard said wind energy sales will drive that growth. In 2010 it was worth $40 million.
"Because of the new wind power generating capacity that was put in place in the last two years, that's giving a big boost to utilities," said Bernard. . Both the Suez and the City of Summerside's wind farms started producing power in 2009, and Bernard expects more wind development this year.
But the Atlantic Provinces Economic Council forecast expects poor employment numbers will slow growth on the Island.
"Employment's a bit weak. That puts a drag on income and spending," said policy analyst Fred Bergman.
"You ask three different economists you're going to get three different answers."
APEC's 1.7 per cent growth projection puts P.E.I. below the national average.
International exports from the Island will be up for the next two years, according to Export Development Canada.
The Crown corporation's predictions for 2011 and 2012 says exports will grow by at least six per cent each year. Most of those gains will come from potatoes and other food crops. Lobster shipments to the U.S. are also expected to increase in 2012, with economic recovery south of the border expected to increase demand.
The strong Canadian dollar continues to be a challenge for exporters, but EDC expects the loonie will drop below parity next year.
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