HALIFAX, May 26 /CNW Telbec/ - Nova Scotia's international exports are forecast to rebound strongly this year with 12 per cent growth, and outperform all other provinces in 2011 with 17 per cent growth, according to a provincial export forecast released today by Export development Canada (EDC).
Exports from Nova Scotia contracted by 26 per cent in 2009.
"Nova Scotias' strong performance is based on improved demand from the United States, which translates into a broad-based rebound of Nova Scotia's main export sectors including natural gas, fish, tires, and newsprint," said Peter Hall, Chief Economist for EDC. "Natural gas exports, in particular, will drive the province's exceptional export growth in 2011."
The agrifood sector accounts for 24 per cent of the province's total exports, and EDC believes the province's largest export sector will grow by 2 and 8 per cent in 2010 and 2011, respectively.
"Although EDC does not anticipate a dramatic rebound in prices for lobster or crab, ground fish, herring and shrimp stocks have remained stable and crab has increased," Mr. Hall said. "Together with positive developments on the regulatory front, Nova Scotia's fish exports are well placed for a modest recovery through 2011."
Motor vehicles constitute the second largest export sector in the province, and EDC forecasts the sector to grow by 13 per cent this year and 7 per cent in 2011.
"An increase in U.S. vehicle sales to around 11.4 million units in 2010 will boost OEM production south of the border" said Mr. Hall. "Higher sales activity, together with low inventory levels, will drive demand for Nova Scotian tire exports over the next two years. As a result, we expect the Michelin plant should operate at full capacity starting this year."
The energy sector continues to grow in Nova Scotia, accounting for 15 per cent of the province's total. EDC expects the sector to grow by 21 and 57 per cent in 2010 and 2011, respectively.
"A partial recovery in natural gas prices will be more than enough to offset the decline in production volumes from the Sable project this year," Mr. Hall said. "Next year, a positive price environment coupled with the coming online of the Deep Panuke offshore project will push exports up significantly."
"Another positive development, which will ensure that Nova Scotia's energy exports continue to grow over the medium term, is the start of production at the Donkin coal mine in 2012. The mine has both thermal and coking coal resources that, once extracted, will primarily be shipped overseas."
Canadian exports are forecast to rise 11 per cent in 2010 and 7.6 per cent in 2011. Nationally, economic growth is expected to rise 2.5 per cent in 2010 and 2.9 per cent in 2011. Internationally, EDC is forecasting global growth of 3.7 per cent in 2010 and 4.2 per cent in 2011. 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 8,400 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining, a recognized leader in financial reporting and economic analysis, and has been recognized as one of Canada's Top 100 Employers for nine consecutive years.
SOURCE Export Development Canada
For further information: For further information: Media contacts: Phil Taylor, Export Development Canada, Tel: (613) 598-2904, Blackberry: firstname.lastname@example.org