British Columbia exporters face continued growth after a stellar 2016, thanks to building momentum in the U.S. economy and ongoing success in high-growth emerging markets, according to Export Development Canada’s semi-annual Global Export Forecast.
As the Chinese economy, the province’s second-largest export market continues to adjust, British Columbia will continue to benefit from the strengthening of its top export market south of the border. After topping the charts with 10 per cent growth last year, U.S. performance and solid opportunities in emerging markets will boost BC’s export performance by a further 4 per cent this year. The province will see robust performances in ores and metals – an 11 per cent increase this year -- with more moderate gains in the agri-food and forestry sectors. Exports are projected to grow by 3 per cent in 2018.
“B.C.’s trade diversification will pay dividends. Budding trade with India and Indonesia sets the province up to benefit from a long run of expansion,” said Peter Hall, EDC Chief Economist and Vice President. “Global growth is well illustrated by the pattern of export growth in the province. Some may argue diversification is done; the numbers suggest it is bound to resume.”
Despite the good news, Canadian exporters are facing unprecedented risk in global markets due to an increasing trend that is threatening to dismantle globalization. The current debate on the future of softwood lumber is a case in point. However, it is plain that at the same time the debate is raging, business activity is doing better than at any point in the post-recession period.
“This is a story of risk, opportunity, and what-ifs,” said Mr. Hall. “The uncertainty could easily frighten business into inaction. The ramp-up in business activity could make the decision to hold back a very costly one. The message that EDC has for Canadian companies is to stay in the game and win the contracts that others are shying away from.”
Mr. Hall is discussing export prospects for B.C., as well as the nation at the EXCELerate 2017 conference at the Westin Bayshore in Vancouver, part of a month-long, 13-location cross-country Let’s Talk Exports tour. The initiative highlights export prospects for Canadian companies around the globe in addition to providing insights into the health of the global economy and how it will impact Canadian exporters. For more information, visit EDC’s Global Export Forecast to learn more.
Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian businesses make an impact at home and abroad. EDC has the financial products and knowledge Canadian companies need to confidently enter new markets, reduce financial risk and grow their business as they go from local to global. Together, EDC and Canadian companies are building a more prosperous, stronger and sustainable economy for all Canadians.
For more information and to learn how we can help your company, call us at 1-800-229-0575 or visit www.edc.ca.