Ontario exports to grow as US demand surges: EDC
Metal ores and industrial machinery to be the main drivers.
LONDON, Ont. — Ontario exporters will see a surge in business this year thanks to a lower value dollar and the increasing pace of the US recovery, according to an EDC report.
The Export Development Canada forecasts Ontario’s international exports will grow by 6% this year and 7% next year.
Approximately 78% of Ontario’s 18,681 exporters sell into the US. The total share of Ontario’s exports to emerging markets has increased to 7% in 2013 from 5% in 2009.
“Ontario has struggled to grow its exports in the post-crisis period,” said Peter Hall, the federal export agency’s chief economist. “A positive about-face is expected this year, as global businesses get back into investment mode. The weaker Canadian dollar will help to kick-start export growth.”
Shipments of metal ores and international sales of industrial machinery will be the main growth drivers for the province through 2015, says the EDC’s Global Export Forecast.
Agri-food is well positioned to supply the world, says Hall, but auto sector exports
will not be as impressive.
“In spite of soaring US sales, Ontario shipments of vehicles and parts will be limited by tight capacity constraints. Even if there are large new investment announcements, any boost to exports will likely take root only after 2016. Ontario firms generally continue to favour offshore investments,”said Hall.