TORONTO, April 3 /CNW/ :

 TORONTO, April 3 /CNW/ - As investment activity gears down and labour
markets soften, Prince Edward Island’s economic growth is expected to moderate
to the low-to-mid one per cent range this year and through 2009, according to
the latest provincial economic forecast from RBC.
    “Similar to the rest of the country, the province’s manufacturing sector
is also coming under pressure from the strong Canadian dollar and weaker U.S.
demand for Canadian exports,” said Craig Wright, senior vice-president and
chief economist, RBC. “Despite continued weakness in the U.S. economy, we
should see moderate growth for PEI in 2008.”
    The report noted, however, that the province’s exposure to weaker U.S.
demand is lower than other provinces, as 13 per cent of its GDP is dependent
upon exports to the U.S. Both non-residential and residential construction
markets are also off their peaks and expected to cool further this year.
    On a more positive note, the tourism industry has held up despite the
difficult economic climate, thanks to more tourists from overseas countries,
that helped offset the decline in U.S. visitors… read more