Canadian Companies Stand to Gain from a Growing U.S. Economy: EDC

Non-energy sectors are already increasing exports, and energy will rebound in 2016

OTTAWA, Nov. 3, 2015 /CNW Telbec/ – Canadian businesses can expect to see a seven-per-cent increase in the value of their exports in 2016 following a slight one-per-cent decline this year that has been mostly caused by sharply lower oil prices, according to a new global export forecast released by Export Development Canada (EDC).

The Global Export Forecast Fall 2015 notes that much of this increase will be driven by strong growth in the United States, which is Canada’s largest export customer, but also by improving prospects in Europe and continuing growth inChina.

“The U.S. economy is being led by increased consumer spending and a rising housing market that can sustain higher growth for at least the next two years,” said Peter Hall, Chief Economist at EDC. “On top of this, U.S. companies now have very tight capacity constraints, which is really good news for Canadian businesses, many of which enjoy a significant price advantage when selling to the U.S. due to the lower Canadian dollar.”

EDC forecasts that global growth will be 3.0 per cent this year and 3.6 per cent in 2016, but acknowledges that this growth is accompanied by considerable volatility in such things as equity and currency markets, as well as in commodity prices, where the price of oil is expected to remain below $60 a barrel through 2016.

“Even with this volatility, many non-energy sectors in Canada are already seeing significant growth in the value of their exports this year, with continued growth expected in 2016,” said Hall. “That shows why it’s important to not be frightened by volatility and to separate good risk from bad risk, so Canadian businesses can benefit from the exporting opportunities that exist.” Read More….

 

Canadian Companies Stand to Gain from a Growing U.S. Economy: EDC