CALGARY - September 8, 2005 - Western Canadian exporters accounted for the largest share of Export Development Canada's (EDC) business volume for the first six months of 2005, according to the mid-year financial results released following EDC's Board of Directors meeting in Calgary yesterday.
Of the total EDC business volume of $25.7 billion, Western Canada accounted for $8.9 billion, an increase of 12 per cent over 2004. Across Canada, Ontario accounted for $8.1 billion (decreasing 13 per cent over 2004), Quebec accounted for $7.2 billion (decreasing 13 per cent over 2004), and Atlantic Canada accounting for $689 million (increasing 85 per cent over 2004).
The greatest growth in Western Canada was found in the energy sector, with a significant increase of 44 per cent over the same period in 2004. In the first half of 2005, EDC reported a business volume of $2 billion for the sector, compared to $1.4 billion over the same period last year.
"The record oil prices have spurred a strong increase in production from Western Canada, accounting for the surge in energy sector exports from that region," said Linda Niro, Regional Vice-President, Western Canada. "But more importantly, we are seeing growth in almost all sectors, attesting to Western Canada's diversification and productivity."
These findings are consistent with EDC's Spring Trade Confidence Index results, which showed that exporters in Western Canada were the most positive about upcoming export business.
In addition, strong growth was found in the base / semi-manufactured goods sector, increasing by a significant 33 per cent. The base / semi-manufactured goods sector (a broad sector encompassing unfinished products such as chemicals, ores and minerals, petroleum products, building materials, textiles, plastics and rubber) has traditionally accounted for nearly half of the total EDC volume from the region. In the first half of 2005, the sector's volume was $4.1 billion of the total regional $8.9 billion, up from $3.1 billion in 2004.
While Canada's overall export growth has slowed in 2005, EDC has so far recorded 20 per cent growth in its business volumes in opportunity-rich developing markets. EDC's total business volume in the first half of 2005 reached $25.7 billion, slightly below the 2004 figure of $26.1 billion, reflecting the challenges of higher energy costs and a stronger dollar felt by Canada's exporters. In the first half of 2005, EDC supported $6.4 billion in trade in developing markets, compared to $5.3 billion in 2004 (more details are available in a press release outlining EDC's financial results, also released today and available at http://www.edc.ca/docs/news/2005/2005_news_e_7738.htm).
EDC is a Crown corporation that provides trade finance and risk management services for up to 7,000 Canadian exporters and investors. In 2004, EDC supported $54.9 billion in export sales or investments in 177 markets worldwide. EDC is a recognized leader in providing essential commercial financial solutions to Canadian companies of all sizes, and their customers, helping them succeed in the global marketplace.
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Media contact:
Phil TaylorEDC Public Affairs(613) 598-2904 ptaylor@edc.ca
