Partial recovery of energy prices from the abyss of early 2016 is fuelling a rebound for the province’s export sector after a double-digit stall last year according to Export Development Canada’s (EDC) semi-annual Global Export Forecast.
The province’s 9 per cent growth will be led by the energy sector, which will rebound with growth in international shipments of 18 per cent. The important agri-food industry, which accounts for almost half of total exports, will increase by just 2 per cent, while a recovery in fertilizer exports is responsible for a 4 per cent jump.
“Saskatchewan’s agri-food exports continue to feed world demand, and have huge future potential,” said Peter Hall, EDC Chief Economist and Vice President. “Weather may have hurt crop qualities and resulted in lower prices last year, but prices should rebound this year. That, combined with a low dollar and increasing demand in emerging markets, should give agri-food exports momentum in the next two years.”
Despite the good news, Canadian exporters are facing unprecedented risk in global markets due to an increasing political trend that is threatening globalization. Even as the globalized architecture of international commerce is being questioned in the geo-political space, EDC is convinced that trade business and foreign investments will continue to gain steam in the short term.
“This is a story of risk, opportunity, and what-ifs,” said Mr. Hall. “The uncertainty could easily frighten business into inaction, but 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 Saskatchewan as well as the nation May 9th, at the Sheraton Cavalier Hotel Saskatoon. The event, in partnership with Saskatchewan Trade & Export Partnership (STEP), is 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 Global Export Forecast to learn more.
Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian companies of all sizes succeed on the world stage. As international risk experts, we equip Canadian companies with the tools they need – the trade knowledge, financing solutions, equity, insurance, and connections – to grow their business with confidence. Underlying all our support is a commitment to sustainable and responsible business.
For more information and to learn how we can help your company, call us at 1-888-434-8508 or visit www.edc.ca.