WINNIPEG, Nov. 15, 2012 /CNW/ - Export Development Canada's (EDC)
forecast for Manitoba's export growth maintains a strong gain of 7 per
cent in 2013 after a 5 per cent gain this year.
"The long-awaited U.S. recovery and a strong global agri-food market
will boost demand for Manitoba exports next year ahead of national
average growth," said Peter Hall, Chief Economist, EDC.
"In spite of the strong Canadian dollar, Manitoba's manufacturing sector
is on a tear, with rising sales in a number of key sectors, including
aerospace, buses and agricultural equipment. This performance is no
doubt aided substantially by its superior industrial and regional
Global recession has eroded about 10 per cent of Manitoba's export
sector, with the number of exporters declining from 1,263 in 1999 to
1,156 in 2010.
"The good news is that Manitoba retained a relatively high level of
exports to emerging markets, between 20 and 23 per cent, during the
same time frame," said Hall. "This continued diversification is an
important factor in the province's continued export strength. Next
year's gains will be by rapid emerging market sales and revived U.S.
growth, giving exporters the best of both worlds."
Manitoba's exports depend on the agri-food, industrial goods and
machinery/equipment sectors, which together account for three quarters
of the province's total international sales.
The agri-food sector generates over 36 per cent of the province's total
exports. EDC expects agri-food exports to jump by 14 per cent next year
after a strong 12 per cent gain this year.
"Soaring grain prices, a result of the U.S. drought and continued tight
global supply conditions, boosted this year's numbers," said Hall. "The
2012 bumper crop will give next year's growth an additional boost.
Higher canola production over the forecast period will help
international sales, and exports will benefit from higher global
Manitoba's industrial goods sector accounts for more than 27 per cent of
the province's total exports, and is forecast to decline by 3 per cent
next year, following a 12 per cent drop in 2012. "This year's drop is
mainly due to a sharp decline in copper exports following the closure
of the Trout Lake Mine. Despite disappointing near-term numbers, mining
is ramping up for a big expansion. At the end of next year production
will commence at Hudbay's Lalor Project, and at their new mine at Reed
Lake, bringing a strong rebound for metal exports in 2014."
The equipment and machinery sector accounts for 12 per cent of the
province's total exports, and will see impressive 9 per cent growth
next year after a 17 per cent gain this year. "We expect a surge in
sales agricultural machinery, as higher food prices spur investment in
farm operations around the world."
"The transportation sector will be the star performer, with the
aerospace industry seeing a surge in exports of aircraft parts by
Boeing Winnipeg as production of the 787 Dreamliner ramps up," added
Hall. "Shipments of buses are also up a stunning 40 per cent so far
this year, benefiting from improving economic conditions in the U.S."
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. The forecast is available on EDC's website 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 7,700 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:
Export Development Canada
Tel: (613) 598-2904
Blackberry: email@example.com / (613) 291-1276