(CHARLOTTETOWN) May 29, 2007 The value of Prince Edward Island's international exports are expected to increase by 2 per cent in 2007 before improving to 4 per cent growth in 2008, according to a provincial export outlook by Export Development Canada (EDC).
"Agri-food dominates the Island's export economy and modest growth in 2007 and 2008 will build on the solid gains of the past couple of years," said Stephen Poloz, Senior Vice-President of Corporate Affairs and Chief Economist. Agri-food exports continue to form the backbone of the Island's exports representing two-thirds of the province's exports. "Despite the high concentration in agri-food and fish products, the economy of Prince Edward Island is becoming more diversified, and this is increasingly reflected in its exports," added Poloz.
Agri-food exports from the Island are dominated by potatoes and lobsters. Potato exports include fresh, frozen, seed, and manufactured potato products. Processed frozen french fries account for more than 70 per cent of the value of the Island's potato exports and were up 5 per cent in 2006 and are expected to see similar growth this year. Fresh potato exports increased by 27 per cent in 2006 and are expected to have another good year in 2007, although at a more moderate growth rate (8%). Factors contributing to growth in this export category include: good yields and well managed potato acreages, record low stockpiles of European potatoes, and strong demand for fresh potatos in the Western US.
Seafood exports were down 7 per cent in 2006. The Island's lobster fishery accounts for more than 60 per cent of total fishing exports. Although lobster landings increased 16 per cent in 2006, exchange rate adjusted prices were lower and resulted in a decline in export receipts. Seafood prices are likely to fall further this year resulting in a modest 4% decline in export receipts in 2007.
Nationally, Canadian export volumes are forecast to decline by 1 per cent in 2007 before rising by a modest 1 per cent in 2008. Canadian economic growth is forecast to remain stable at 2.3 per cent in 2007 and 2.9 per cent in 2008. Internationally, EDC is forecasting 4.5 per cent global economic growth in 2007 and 4.6 per cent growth in 2008. EDC's Global Export Forecast is available at http://www.edc.ca/gef.
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 has been named one of Canada's Top 100 Employers for six consecutive years.
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Media contact:
Phil TaylorEDC Public Affairs(613) 598-2904 ptaylor@edc.ca
