Manitoba exports among strongest in country in 2006, says EDC
WINNIPEG – November 17, 2006 – Manitoba’s export growth remains among the country’s best in 2006, according to a provincial export outlook by Export Development Canada (EDC). The province’s total exports are forecast to increase by 5 per cent in 2006 and by a more modest 1 per cent in 2007.“Led by a strong performance in agri-food and industrial goods, Manitoba’s export growth is among Canada’s best,” said Stephen Poloz, Senior Vice-President of Corporate Affairs and Chief Economist. “Adding energy to the mix, we see that Manitoba’s top three export sectors, accounting for more than 60 per cent of the total export bundle, are in growth mode in 2006. However, momentum will slow in 2007.” Manitoba’s exports are driven by the agri-food and industrial goods sectors, accounting for 29 and 20 per cent of the province’s total exports.
Manitoba’s agri-food exports are forecast to grow by 10 per cent in 2006 and 7 per cent in 2007. Wheat exports rebounded in 2006 owing to higher yields than 2005. Stronger pricing should also support exports through 2007. Manitoba farmers are taking advantage of weak global production of canola and strong Chinese demand and an expanding bio-diesel industry. Pulse crops are expected to enjoy strong prices in 2006, but production declines in canola and dry field peas should limit oilseed and pulse export growth in 2007. Live animal exports continued to post significant gains in 2006, but growth in the final months of the year and into 2007 are expected to moderate.
Industrial goods exports are forecast to grow by 11 per cent in 2006 but decline by 3 per cent in 2007. In Manitoba, this sector is dominated by industrial metals and chemical exports. Prices for industrial metals in general are expected to decline in 2007 as demand growth moderates and inventories start to rebuild. Nickel, the province’s largest metal export, is susceptible to price corrections within the forecast period. Chemical exports, led by pharmaceutical and medicine manufacturing, have struggled since 2004 owing to the US administration’s offensive against Canada’s $1 billion internet pharmaceutical industry, the bulk of which is delivered out of Manitoba.
Nationally, Canadian economic growth is forecast to remain stable at 2.8 per cent in 2006 and 2.4 per cent in 2007. Canadian exports are forecast to grow by 3 per cent in 2006 before declining by 1 per cent in 2007. Internationally, EDC is forecasting 4.8 per cent global economic growth in 2006 and 4.0 per cent growth in 2007. EDC’s Global Export Forecast is available at http://www.edc.ca/docs/ereports/gef/EFindex_e.htm.
Export Development Canada (EDC) is Canada’s export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC’s knowledge and partnerships are used by 7,000 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining and is a recognized leader in financial reporting, economic analysis and human resource management.
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Media contact:
Phil Taylor
EDC Public Affairs
(613) 598-2904
ptaylor@edc.ca
