(Halifax) – May 7, 2014
An improving U.S. economy and a lower Canadian dollar will help spur Nova Scotia’s exports ahead by 8 per cent in 2014 and an additional 3 per cent in 2015, according to Export Development Canada’s (EDC) Global Export Forecast.
With more than 70 per cent of Nova Scotia’s exports destined for the U.S. market, its 765 exporters have a heavy reliance upon the American consumer playing a pivotal role in the province’s export picture.
EDC Chief Economist Peter Hall was in Halifax today to address a breakfast crowd of local business leaders at the Marriott Harbourfront Hotel about trends in the global economy and the impact on Nova Scotia’s international sales opportunities. The energy sector will dominate Nova Scotia’s near-term export profile. Sharp declines in recent years will give way to triple-digit growth this year, followed by a still-hefty 22 per cent gain in 2015.
“Energy exports are set for a banner year in 2014, as Deep Panuke production hits its stride,” said Mr. Hall. “The resolution of production problems at Sable will further add to this year’s triple-digit bonanza. This growth has been a long time coming, but in 2014, it’s finally here.”
The forecast notes that Nova Scotia’s energy exports could jump from nearly CAD 100 M in 2013 to CAD 300 M in 2015 as natural gas shipments grow past domestic market needs.
“Nova Scotia is making a big push into emerging markets, with the share of their total exports going to these growth-rich markets rising to 13 per cent in 2013, a huge increase from just 7 per cent in 2009,” said Mr. Hall. “Increased business with China and the looming free trade agreement with South Korea will set the province up nicely for the resurgence in global demand that we are seeing this year.”
“Nova Scotia’s longer-term export story really comes down to the timing of natural gas deliveries from the one billion dollars’ worth of new exploration that is coming online,” noted Mr. Hall. “Nova Scotia has the potential to become a major Canadian energy player and solidify its export growth for many years if these developments pan out.”
EDC’s semi-annual Global Export Forecast addresses the latest global export conditions including market- and sector-specific insights to help Canadian exporting companies grow their international sales. 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, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private- and public- sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment.
For more information about how EDC can help your company, visit www.edc.ca
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Phil Taylor
Export Development Canada
(613) 598-2904
ptaylor@edc.ca
