Bianca McGregor is CEO of the Greater Charlottetown Area Chamber of Commerce. Photo by Vivian Ulinwa/The Guardian /FileArticle contentThe province recently released its 2025 statistical review, and on the surface, the numbers are impressive. P.E.I.’s economy grew by 2.8 per cent in 2025, making us the second-fastest growing economy in Canada. Manufacturing shipments reached a record $4 billion, international exports climbed to an all-time high of $2.6 billion, employment reached another record, and housing starts were the strongest in more than 50 years.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY.Subscribe now to access this story and more:Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsSUBSCRIBE TO UNLOCK MORE ARTICLES.Subscribe or sign in to your account to continue your reading experience.Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsRegister to unlock more articles.Create an account or sign in to continue your reading experience.Access additional stories every monthShare your thoughts and join the conversation in our commenting communityGet email updates from your favourite authorsSign In or Create an AccountorArticle contentArticle contentSo why doesn’t it feel like we have a booming economy? The report focuses on gross domestic product (GDP) as its main measure of growth. Simply put, GDP measures activity, not prosperity. It tells us the economy is getting bigger. It doesn’t tell us whether businesses are more competitive, more profitable, or whether Islanders are feeling more financially secure.Article contentArticle contentIt’s also important to remember that not all GDP growth is created equal. When Island businesses export more products, attract more visitors, or expand into new markets, they bring new wealth into our economy. However, GDP also grows when government spends more on things like health care and infrastructure. Those investments are funded by taxpayers, transfer payments and borrowing.Article contentPublic-sector capital investment grew 21.2 per cent in 2025 which was more than double the pace of private investment, and total government spending outgrew government revenue by more than two to one (8.5 per cent versus 3.6 per cent). As we all know, this government is in a particularly precarious debt situation, so it’s understandable that a hook like having the second fastest-growing economy in the country is something the province would want people to focus on. It’s encouraging.Article contentArticle contentOther highlights in this report that miss the mark when you dig a little deeper.Article contentEmployment hit a record 93,500. True, but the unemployment rate averaged to 8.0 per centin 2025, which is more than a full point above the national average of 6.8 per cent. A smaller share of Islanders participated in the labour force compared to the previous year.Article contentPopulation grew 1.6 per cent. True, but now the growth rate is trending down, and immigration, the main driver of that growth for a decade, fell 31.4 per cent in a single year.Recent reports show retirees moving to the island and working age islanders migrating out.Article contentHousing starts hit their best mark since 1973. Genuinely good news, but still notenough. Charlottetown’s rental vacancy rate is 1.7 per cent, and a significant portion of what gotbuilt was single-family homes, not the rental supply that would actually move the needleon affordability, and don’t get us started on the Residential Tenancy Act (RTA) and howthat’s contributing to less safe and affordable housing on P.E.I.
COMMENTARY: GDP growth isn’t the same as prosperity
