OTTAWA, November 10, 2005 -- Newfoundland and Labrador's global exports are expected to stabilize in 2006 after a 5 per cent contraction in 2005, according to a provincial export outlook by Export Development Canada (EDC).
"After a challenging 2005, Newfoundland and Labrador exports should see modest gains, across all sectors, in 2006," said Stephen Poloz, Senior Vice-President of Corporate Affairs and Chief Economist. "Energy and agri-food are looking good in 2006, while industrial goods experienced phenomenal growth in 2005."
Energy exports are responsible for more than half of the province's total exports with refined petroleum products accounting for 82 per cent of total energy exports. With no expected increase in production and continued sales diversion to Canadian customers, the export growth for 2005 is expected to shrink by 12 per cent and stabilize at that level in 2006.
Seafood dominates Newfoundland's agri-food exports, which account for more than 22 per cent of the province's exports, will shrink by 22 per cent in 2005, largely attributable to lower prices and compounded by slightly lower volumes. With anticipated increases in crab and shrimp prices, this sector should rebound with 8 per cent growth in 2006.
Iron ore dominates the province's industrial goods sector, which has seen significant growth in exports with a simultaneous and significant increase in global demand and prices. This sector is forecasted to achieve a massive 60 per cent growth spurt in 2005.
Nationwide, Canadian economic growth is forecast to remain stable at 2.8 per cent in 2005 and 2.9 in 2006. Canadian export volumes are forecast to grow by 4 per cent in 2006 following a lean 1 per cent in 2005. Internationally, EDC is forecasting a 4.2 per cent global economic growth in 2005 and 4.1 per cent growth in 2006, down from 5.1 in 2004. The continued healthy performance remains ahead of the historical long-term average. EDC's Global Export Forecast is available at http://www.edc.ca/docs/ereports/gef/EFindex_e.htm.
Export Development Canada (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 7,000 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining and is a recognized leader in financial reporting, economic analysis and human resource management.
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Media contact:
Phil TaylorEDC Public Affairs(613) 291-1276ptaylor@edc.ca
