OTTAWA, June 25, 2015 /CNW/ - Canadian companies that sell abroad are feeling more optimistic about international business opportunities over the next six months, says a semi-annual report by Export Development Canada (EDC).
The report is a summary of EDC's Trade Confidence Index (TCI) survey, which measures a number of elements that together, give an indication of how Canadian exporters and investors are feeling about their business opportunities in the next six months.
"In spite of weak data and increasing concern about the US economy, Canadian exporters still seem to be expecting improvement in the global trade arena," said Peter Hall, EDC's Chief Economist. "There is also increased interest in doing business in new countries, a sign that market diversification is alive and well."
Among all the elements of the survey, respondent's expectations around international business opportunities increased the most over last fall's report, with 45 per cent of respondents believing opportunities will improve (up from 33 per cent in Fall 2014). This is the highest percentage recorded for this particular question in the last ten years.
Respondents cited the low Canadian dollar and resurgence of the U.S. economy as the main reasons for their positive outlook.
Overall trade confidence was tempered, however, by exporters' bearish outlook on the domestic economy, which was mainly attributed to the downturn in the oil and gas sector and low Canadian dollar.
Weaker results in this element of the survey caused the overall TCI score for Spring 2015 to fall slightly to 75.1, down from 75.8 last fall. Despite the drop, the TCI level remains above the historical average.
"The small drop in the Index is no cause for alarm," said Hall. "The weaker overall result is totally due to softer domestic market expectations. In contrast, optimism about international business opportunities surged this spring."
Learn more about EDC and the Trade Confidence Index.
EDC is Canada's trade finance agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private- and public-sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment.
For more information about how we can help your company, call us at 1-888-434-8508 or visit www.edc.ca.
SOURCE Export Development Canada
Image with caption: "Conducted twice a year since 1999, the Trade Confidence Index is a pulse check of Canadian exporters’ level of confidence and their projections around international trade opportunities in the next six months. (CNW Group/Export Development Canada)". Image available at: http://photos.newswire.ca/images/download/20150625_C6111_PHOTO_EN_18294.jpg
For further information: EDC media relations contact: Simon Forsyth, Export Development Canada, (613) 598-3852, [email protected]