-- Prince Edward Island is now projecting a "sizeable" deficit for the just-ended 2025/26 fiscal year, with the shortfall expected to slim "modestly" this year, noted CIBC.
However, CIBC also noted, the $410 million deficit expected for fiscal 2026/27 is still almost 3.5% of gross domestic product and the province in Canada is launching a spending review with the aim of accelerating the narrowing of the deficit beyond the current year.
Net financial requirements are slightly lower this year compared with fiscal 2025/26, largely due to the fact that the province doesn't have any bond maturities to refinance this year, said CIBC.
Long-term borrowing is expected to be $900 million, which is $100 million lower than the prior year, added the bank, it added.