CHARLOTTETOWN - May 11, 2006 - Prince Edward Island's international exports grew by an outstanding 19.9 per cent in 2005 to reach CAD 773 million, the highest level in PEI's history, according to a provincial export outlook by Export Development Canada (EDC). With growth evenly distributed across most sectors, EDC forecasts that PEI's exports will grow by 6 per cent in 2006 and another 2 per cent in 2007.
Prince Edward Island's exports are driven primarily by the agri-food sector, which accounts for 64.3 per cent of the province's goods and services shipped abroad, followed by the industrial goods sector with a 7 per cent share.
"With potato and lobster prices continuing to hold up, the PEI agri-food sector looks to remain in good shape heading into the slowing global economy," said Stephen Poloz, Senior Vice-President of Corporate Affairs and Chief Economist. "PEI has managed to retain export growth ahead of the national average in 2006 and 2007 without a significant energy sector, the only Canadian province to have done so."
Prince Edward Island's agri-food sector is dominated by potato production which consists of fresh, frozen, seed and manufactured potato products. Frozen potato exports (mostly french fries) account for approximately 75 per cent of the value of the Island's potato exports and were down 4 per cent in 2005 while fresh potato exports increased by almost 30 per cent. After experiencing substantial growth of 13.6 per cent in 2005, PEI's agri-food sector will grow at a more sustainable pace of 4 per cent in both 2006 and 2007.
In 2005 exports of fish products were strong, up 15.5 per cent for the year. Lobster exports, which account for approximately 75 per cent of PEI's total fish exports, expanded by almost 12 per cent in 2005. Going forward, no change is expected in the volume of lobster exports for 2006 and 2007 as export growth will continue to be driven by strong prices. Prices are expected to rise in 2006, building on gains already seen so far this year. A further modest price increase is anticipated for 2007. However, the strong Canadian dollar could reduce some of the increase in prices this year and remains a risk to the outlook for 2007.
Nationally, Canadian economic growth is forecast to remain stable at 3.0 per cent in 2006 and 2.7 per cent in 2007. Canadian export volumes are forecast to grow by 3 per cent in 2006, up slightly from 2 per cent in 2005. Internationally, EDC is forecasting 4.3 per cent global economic growth in 2006 and 4.1 per cent growth in 2007, down from 4.5 in 2005. 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) 598-2904 ptaylor@edc.ca
