Export Development Canada

Export Development Canada

April 30, 2014 04:00 ET

Ontario Exports Set to Grow for Next Two Years as U.S. Demand Ramps Up: EDC

LONDON, ONTARIO--(Marketwired - April 30, 2014) - A new forecast by Export Development Canada (EDC), Canada's leading provider of financing and insurance for Canadian exporters, calls for Ontario's international exports to grow by 6 per cent this year and 7 per cent next year.

The forecast explains that an accelerating recovery in the U.S. will lead to higher demand from American customers. At the same time, a lower Canadian dollar will provide opportunities for price competition and increased profit margins.

Approximately 78 per cent of Ontario's 18,681 exporters sell into the U.S. The total share of Ontario's exports to emerging markets has increased to 7 per cent in 2013 from 5 per cent in 2009.

"Ontario has struggled to grow its exports in the post-crisis period," said Peter Hall, Chief Economist, EDC. "A positive about-face is expected this year, as global businesses get back into investment mode. The weaker Canadian dollar will help to kick-start export growth."

Hall was in London today to address a breakfast crowd of local small- and medium-sized business leaders about trends in the global economy that could impact their international sales opportunities, both positively and negatively.

The forecast notes that shipments of metal ores and international sales of industrial machinery will be the main growth drivers for the province through 2015.

"The agri-food sector is a real sleeper story in the provincial export picture," explained Mr. Hall. "Ontario is Canada's top province for agricultural output and is well positioned to feed our increasingly hungry world. Long-term growth prospects in this sector are very strong."

"Auto sector exports will not be as impressive, however," added Hall. "In spite of soaring U.S. sales, Ontario shipments of vehicles and parts will be limited by tight capacity constraints. Even if there are large new investment announcements, any boost to exports will likely take root only after 2016. Ontario firms generally continue to favor offshore investments."

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

Contact Information

  • Contact information for media:
    Phil Taylor
    Export Development Canada
    E-mail: ptaylor@edc.ca
    Phone: 613-598-2904