EDMONTON, ALBERTA--(Marketwired - May 15, 2014) - A new forecast by Export Development Canada (EDC), Canada's leading provider of financing and insurance for Canadian exporters, calls for Alberta's international exports to grow by 8 per cent this year and 5 per cent next year.
The forecast notes that the energy and agri-food industries will be the main growth drivers for the province for 2014 with growth weakening in both sectors the following year. At the same time, a lower Canadian dollar will provide opportunities for price competition and increased profit margins.
"The U.S. accounts for about 88 per cent of Alberta exports, so its robust recovery is good news for a number of sectors," said Peter Hall, EDC's Chief Economist. "Increased U.S. demand for cattle, beef, wheat and canola will mean double digit agrifood sector growth in 2014."
Hall was in Edmonton today at the Westin Hotel 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.
"There has been a lot of talk about the potential impact of the major pipeline projects," said Hall. "Surplus capacity will be partly alleviated by rail shipments of crude oil and the Alberta Clipper expansion, which is good news for the near term. Longer-term investment and production will require more substantial transportation infrastructure."
The volatility in Russia, Ukraine and the Middle East has kept crude prices relatively high, including Western Canada Select. However, prices are expected to moderate as we move into 2015, with WTI crude narrowing to 90 USD.
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