The ratings on the Province of Prince Edward Island (PEI) reflect the following credit strengths: PEI's economy matched the national economy in 2003 as real GDP increased 1.9% (compared with 2% nationally), following a stellar result a year earlier (5.7% for 2001û2002). Employment levels increased solidly from 2002-2003 (2.5%), driving the unemployment rate down to 11% from 12% in 2002, as labor force results were again solid. The pace of economic growth is expected to be moderate with real GDP increasing about 1% compared with 2003 levels. PEI benefits from significant revenue support through the equalization and Canada Health and Social Transfer (CHST) payments provided by the federal government. Transfers are budgeted to increase this year, as both equalization payments
