Photo by Mahdi Abdulrazak
According to Export Development Canada, the government agency concerned with foreign sales, Canada’s exports are expected to reach pre-recession levels next year and become the main driving force of the economy again. The substantial increase will be fueled by rising oil prices and the recovery of lumber and auto parts companies, together with the rising resource sector.
Getting over the hurdle
During the economic downturn, the exports sector suffered massive losses — more than 25 per cent of its turnover. Analysts expected a long recovery process, which is why the newly released figures surprised and comforted investors. After all, most businesses will benefit noticeably from the rebound.
The annual growth rate of exports constituted 10.4 per cent in 2010. For 2011, EDC forecasts a 12 per cent annual growth rate, and 7 per cent for 2012. The given data clearly shows that Canada’s overall growth will be driven mainly by the success of its exports.
Peter Hall, EDC chief economist, commented on the situation: “Canadian exporters are on the threshold of what could be one of the most exciting periods that we’ve ever experienced. That’s a new era of Canadian export growth.”
Further gains could be achieved if investors succeed in exploiting emerging markets. It is necessary to recognize the market potential of countries like China and India. Calls for diversification from the United States have been heard for a long time, but now it seems that investors have started to act. It is also important to realize that the economies of other developed countries will recover at a comparable rate and that foreign investors are not going to give up their fight for the new markets, either.
one of the most exciting periods that we’ve ever experienced. That’s a new era of Canadian export growth.”???