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Until then, yes, you'll have to build up settlements on other islands that you want to use for production.
BUT you don't need to build complete production chains on the same island. You can limit islands to peasants and workers and ship everything to your main island for processing, if you want.
In fact, you can't play all the way to the end of the game with a single island. You'll need at least a new world island, and probably some more old and new world islands for extra ressources.
It's too expensive, unreliable and limited in quanitity in the long run.
Thanks very much for your reply. Glad to know once i have engineers that the new islands can share my population level etc. Now i know i can just have production buildings on a new island if i want.
I think i will claim and island early in the game so the AI can't have it and wait till i have engineers to build on it.
Thanks again mate