British Columbia's lumber sector will drive province's export growth over next two years, Export Development Canada predicts; sector will be 'scarcely able to meet demand' as US housing recovers, Chinese demand grows, says chief economist
VANCOUVER, British Columbia
May 13, 2014
– A new forecast by Export Development Canada (EDC), Canada's leading provider of financing and insurance for Canadian exporters, calls for British Columbia's international exports to grow by 8 per cent this year and 7 per cent next year.
The forecast notes that the forestry sector, notably on the lumber side, will be the main growth driver for the province for the next two years. The sector is predicted to grow by 15 per cent in 2014 and an additional 10 per cent in2015. The forestry sector accounts for the largest share of provincial exports, at approximately 35 per cent of the total.
"In between the U.S. housing sector recovery and growing demand from China, B.C.'s lumber sector will be scarcely able to meet demand," EDC's Chief Economist, Peter Hall, said. "The sector's ability to overcome those capacity constraints will be key to export growth in this sector. Chinese demand alone could grow to over CAD 600 M annually."
Hall was in Vancouver today at the Pan Pacific to address a lunchtime crowd of local small- and medium-sized business leaders about trends in the global economy that could impact their international sales opportunities, both positively and negatively.
"The sleeper stories in B.C.'s export picture will be agri-food exports and hydroelectric power, both being lifted by a challenging drought in California," said Hall. "While both sectors only account for about 4 to 5 per cent of total exports, we could see a growth jump of 30 per cent in these sectors this year."
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