PEI export growth to rebound with a 6 per cent gain in 2012, predicts Export Development Canada

MONCTON, NB, Nov. 3, 2011 /CNW/ - Prince Edward Island's (PEI) international export growth is expected to rebound in 2012 with a forecast of 6 per cent growth, according to a Global Export Forecast by Export Development Canada (EDC).

"PEI exports are continuing to benefit from diversification into Mexico and other Latin American destinations," said Peter Hall, Chief Economist for EDC. "Shipments to higher-growth, non-traditional markets are paving the way for stronger export growth in the long term."

PEI's exports are expected to edge up by just 1 per cent in 2011 following a decline of 9 per cent in 2010.

"We had expected the rebound to have begun in the second half of this year, but an unexpectedly soft patch in global GDP in the second quarter that lasted throughout the summer stalled PEI's foreign sales. Reviving U.S. economic fundamentals should lead to stronger demand and higher prices in 2012."

"The high Canadian dollar also weighs on PEI's export sector, and a reprieve is expected through 2012 as the loonie dips below parity."

The province's international export picture is dominated by the agri-food sector, which accounts for 68 per cent of PEI's exports. EDC's forecast calls for the sector to grow by 5 per cent in 2012, on the heels of an expected 6 per cent gain in 2011.

"Prospects for industrial goods, transportation, and the machinery and equipment sectors, which collectively account for just over 18 per cent of the province's total exports, should get better in 2012 as U.S. fundamentals find their feet."

Overall, EDC anticipates a 9 per cent gain in industrial good exports, a 19 per cent jump in transportation sector sales, and a 6 per cent increase in equipment sales in 2012.

Canadian exports of goods and services are forecast to rise 11 per cent in 2011 and 7 per cent in 2012. Nationally, economic growth is expected to rise 2.3 per cent in 2011 and 2.4 per cent in 2012. EDC is forecasting global growth of 3.7 per cent in 2011 and 4.3 per cent in 2012.

EDC's semi-annual Global Export Forecast addresses the latest global export conditions including perspectives on interest rates, exchange rates as well as export strategies to help Canadian companies minimize risk. It also analyzes a range of risks for which exporters should be prepared. EDC's Global Export Forecast is available at http://www.edc.ca/gef.

EDC is Canada's export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC's knowledge and partnerships are used by more than 8,200 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining and a recognized leader in financial reporting and economic analysis.

SOURCE Export Development Canada

For further information:

B-Roll footage of Peter Hall's forecast comments available at: http://Exportwise.ca/listvideo_en.

Media contacts:

Phil Taylor
Export Development Canada
Tel: 613.598.2904
BlackBerry: ptaylor@edc.ca


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