News Releases

CHARLOTTETOWN, PRINCE EDWARD ISLAND--(Marketwired - May 4, 2015) - Firmer U.S. economic growth and a weaker Canadian dollar are projected to support growth across the province this year, according to the BMO Blue Book released today by BMO Capital Markets Economics and BMO Commercial Banking.

Much like the U.S. Federal Reserve's Beige Book, the BMO Blue Book combines the expertise of BMO's economists with information on current business conditions provided to BMO's commercial bankers by local businesspeople.

"Prince Edward Island continues to reap the benefits of the modernization of its economy - benefits that will support growth for years to come," said Carolyn Booth, Senior Vice President, Atlantic Provinces Division, BMO Bank of Montreal. "For a small province, PEI features a very diversified manufacturing sector. When we look at the businesses that have had recent success, we look to aerospace, pharmaceuticals, biosciences and chemicals. All of these niche opportunities will benefit from the growing strength of the U.S. economy and the lower Canadian dollar."

"Real GDP is expected to accelerate to 1.6 per cent this year from a 1.3 per cent pace in 2014," said Robert Kavcic, Senior Economist, BMO Capital Markets. "Firmer U.S. economic growth and a weaker Canadian dollar will help offset ongoing public-sector restraint and more normal agricultural output this year."

Exports are expanding at a strong clip, according to Mr. Kavcic. "Exports are up 11 per cent year over year in the three months through February, led by gains in machinery and electrical equipment, as well as a healthy level of farm, fish and food product shipments."

Ms. Booth added that fishery, tourism and agriculture - the sectors which PEI will always be known - all stand to gain from the current economic conditions. The low dollar, combined with increased demand from both a resurgent U.S. and countries in Europe, will help boost income for local producers. More demand from Asia will also help this trend.

Mr. Kavcic also noted that with U.S. demand expected to remain firm and the Canadian dollar much weaker, trade and tourism could be a positive for the province in 2015. In fact, companies in PEI's tourism industry are anticipating a banner year. Always a top tourist destination, adding the lower dollar will make a trip to the province even more attractive.

Ms. Booth noted that BMO's team of experts is here to help customers in the region make decisions to boost productivity, enable them to expand into new markets and make strategic investment decisions that will propel growth and drive success.

The full BMO Blue Book can be downloaded at www.bmocm.com/economics.

About BMO Financial Group

Established in 1817, BMO Financial Group is a highly diversified financial services provider based in North America. With total assets of approximately $672 billion as of January 31, 2015, and more than 46,000 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, Wealth Management and BMO Capital Markets.