BURLINGTON, ON, April 26, 2012 /CNW/ - Ontario's international export growth is forecast to lead the country with a 9 per cent gain this year and a further 9 per cent gain in 2013, according to the Global Export Forecast released today by Export Development Canada (EDC).
"Resurgent U.S. growth will be a huge driver of Ontario export growth this year and next. Double-digit gains in the auto sector, industrial goods and forestry products are all traceable to economic revival south of the border," said Peter Hall, EDC's Chief Economist. "Growth is being further augmented by fast-growing sales into emerging markets, a steadily rising share of Ontario's international sales."
The three key exporting sectors for Ontario are industrial goods (chemicals, plastics, fertilizers, ores, metals, etc.), accounting for 36 per cent of the province's total exports; motor vehicles and parts, accounting for 32 per cent; and machinery/equipment, accounting for 13 per cent.
"Large gains at Honda and Toyota will be an important driver of the auto sector's export growth in 2012," Mr. Hall said. "Next year, auto industry exports should continue posting healthy gains as the loonie dips below parity and U.S. vehicle sales surge toward pre-recession levels." EDC predicts that motor vehicle and parts exports from Ontario will rise by 15 per cent this year and 10 per cent in 2013.
"Production of Ontario gold, nickel and copper is increasing across the board, and when coupled with continued high prices for these metals, the province's industrial goods exports will be an important driver for the province's exports overall," Hall said. EDC's forecast calls for Ontario's industrial goods exports to grow by 8 per cent this year and 10 per cent in 2013.
"Ontario's exports of machinery and equipment will pick up steam through 2013 as weakness from the telecommunications sector is overshadowed by growing demand for industrial equipment south of the border." Hall said that the province's machinery and equipment sector will rise by 6 per cent this year and 8 per cent in 2013.
Hall was in Burlington today to share his forecast with the province's exporters, the fourth of a 17-city cross-Canada tour. The tour is designed to offer market- and sector-specific insights to help Canadian exporting companies grow their international business.
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. Read EDC's Global Export Forecast.
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.
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