Soaring aerospace industry fuels Quebec’s exports
Diversified economy benefits from strong US demand for resources.
MONTREAL — Quebec’s diversified mix of export sectors is helping to fuel growth that Export Development Canada (EDC) is forecasting to increase by 5% this year and next.
EDC’s semi-annual Global Export Forecast identifies aircraft and parts as the leading sector. With Bombardier on track to deliver its new CSeries aircraft in the second quarter, EDC forecasts growth in the aerospace sector to increase 14% this year, followed by 8% in 2017.
“Equipment and services is another strong sub-sector that will also support Quebec’s upswing in exports this year. Montreal-based CAE, for example, has lined up large simulator contracts with the German Navy and US Air Force this year,” said Peter Hall, EDC’s chief economist.
The surging US economy, and the increasing demand that comes with it, will continue to be a key growth driver for Quebec businesses.
“The vast majority of Quebec’s exports go to the US, so growth south of the border is clearly a good news story for the province,” said Hall. “The price advantage from a lower Canadian dollar will continue to provide export-minded companies with competitive opportunities.”
Resource-based sectors are also looking good. Quebec’s largest export sector – metals, ores, and other industrial products – accounts for roughly one-quarter of all its exports and is forecast to grow 4% both this year and next.
EDC says Quebec’s forestry sector is also doing well, largely as a result of continuing growth in US housing starts. This sector is expected to see growth of 4% this year and 5% in 2017.
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