Prince Edward Island is among the three Maritime Provinces that are sited in the Gulf of St Lawrence, at the east of the country. It is the smallest province of Canada. Prince Edward Island has a temperate climate, with long, mild winters and cool summers. Prince Edward Island’s economy strengthened during the later decades of the 20th century, but the province remains heavily reliant upon federal government assistance. The island’s dependence on agriculture, its lack of mineral resources and the cost of transportation make it one of the poorer provinces. Agriculture, tourism and light manufacturing are the major contributors to the provincial economy.

The Prince Edward Island is the smallest of the district of Canada in size and population. Prince Edward Island is amongst the Canadian provinces that is smallest in area. Prince Edward Island's manufacturing industry relies upon its farm and fishing products, with food-processing the leading sector. Other noteworthy industry groups are transportation equipment, chemicals and chemical products and the printing, publishing and allied industries. Tourism plays an important role in the provincial economy, and the province's beaches are popular for water sports.