SUMMERSIDE – October 8, 2026 – Even as these economic times are very uncertain due to the trade war and other factors, the Deputy Governor of the Bank of Canada remains confident that the Canadian economy will survive, especially because he knows that Canadian entrepreneurs are resilient and will find ways to cope.
Speaking at a breakfast of the Greater Summerside Chamber of Commerce on Thursday morning, in front of about 100 business people, Deputy Governor Toni Gravelle indicated that his institution is doing everything it can to prevent the inflation rate from rising too much. His bank hoped to keep it at a Canadian average of about 2.25 percent for this year, but it seems it will reach 3 percent, mainly due to high gas and oil prices. For the Island, the rate is expected to be around 4.4 percent, he predicts.
All of this is complicated as people and entrepreneurs, faced with market uncertainties, are spending less or waiting to see what will happen before purchasing new equipment or machinery or hiring new employees, he noted in his general address.
FIRESIDE CHAT
There, during a «fireside chat» style discussion with Chamber President Sam Sanderson, the Deputy Governor answered several interesting and diverse questions from Chamber members.
Mr. Gravelle noted that Canadian exports of oil and gas have increased significantly, generating more revenue for the Canadian economy. Additionally, the defense sector is investing significant amounts in major projects across the country, which is generating good returns.
As for the labor market on the Island, there was a 2.5 percent increase last year, even after immigration restrictions. This year, he expects the figure to be slightly lower.
The relatively new sector of artificial intelligence – and more specifically the technical industry that supports it – is positioned to generate significant revenue. A lot of copper and electrical «transformers» are produced that can be exported worldwide for this purpose. But Mr. Gravelle admits that this entire industry is somewhat in a «bubble» that is inflating very quickly and is becoming a bit precarious.
Regarding worker productivity, Mr. Gravelle indicated that the vast majority of «baby boomers,» in their final years in the labor market, were very productive. And then, when they retired en masse, there was an immediate noticeable decline in the overall productivity of the workforce. But now their children have had time to gain more experience and are restoring the level of productivity that was previously seen.
According to the speaker, the best thing entrepreneurs can do right now is to diversify their customer bases and sell their products to different countries or especially to different parts of Canada. They should explore other supply chains (than those coming from American sources) and try to reduce their production costs. He believes that small and medium-sized enterprises are more capable of innovating and responding more quickly to market demands.
