OTTAWA, ONTARIO--(Marketwired - May 30, 2014) - Continued expansion in Newfoundland and Labrador's energy and mining industries will add to strength in other sectors, boosting the province's international exports by 8 per cent this year, according to a new forecast by Export Development Canada (EDC).
EDC is Canada's leading provider of financing, insurance and bonding for Canadian companies that sell into foreign markets. EDC's forecasts are made public in order to help companies plan their export sales and mitigate risks in the counties where they do business.
"Newfoundland's energy sector, a huge boon to the economy, now accounts for close to two-thirds of the province's exports," said Peter Hall, Chief Economist, EDC. "After great growth last year and in 2014, softening global prices will keep export growth in check, at just 3 per cent in 2015."
Hall was in St. John's today at the Delta St. John's to connect with a lunchtime crowd of local business leaders about trends in the global economy that could impact their international sales opportunities.
Approximately half of Newfoundland and Labrador's exports are generated from sales to the U.S. market, a large share, but much more diversified than other Canadian provinces. With more than 19 per cent of the province's exports heading to resource-hungry emerging-markets like China, Newfoundland and Labrador is well-positioned to capitalize on revived global demand.
EDC Economics forecasts that oil exports will rebound in 2014, growing by 6 per cent followed by 4 per cent growth in 2015. Crude production that was offline in 2013 will come back in 2014, but the impact of this will be offset by prices falling from USD 96/bbl in 2014 to USD 90/bbl in 2015 and by falling production in mature wells.
The metals and ores sector accounts for approximately 27 per cent of the province's total exports. The outlook for growth in ore exports is positive for 2014, soaring by 14 per cent thanks to increased production at new developments.
EDC's semi-annual Global Export Forecast addresses the latest global export conditions including market- and sector-specific insights to help Canadian exporting companies grow their international sales. It also analyzes a range of risks for which exporters should be prepared. Read EDC's Global Export Forecast.
EDC is Canada's export credit agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private- and public-sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment.
For more information about how EDC can help your company, visit www.edc.ca