The rating on the Province of Prince Edward Island (PEI) reflects a good economic performance in the past five years, a tax-supported debt-to-GDP ratio that is comparable with similarly rated Canadian and international peers, and the strong revenue support provided by the Canadian federal system. Offsetting these strengths, however, is a slight deterioration in budgetary performance in the past two fiscals, which resulted in a modest increase in tax-supported debt as a share of GDP. The provincial economy performed solidly in 1997-2000. Even in 2001, when a reduced potato harvest dampened overall real GDP growth, some economic high water marks were achieved. The province forecasts that real GDP growth in 2002 will exceed 3%. Though employment is expected to rise
