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
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.
Export Development Canada