VANCOUVER, BC--(Marketwired - November 20, 2014) - British Columbia's (BC's) forestry industry is booming, boasting 11 per cent export growth this year. A new forecast by Export Development Canada (EDC) sees the revival of the US economy extending that trend with 12 per cent growth in 2015.
EDC's new forecast predicts BC overall export growth to be 10 per cent in 2014 and 8 per cent in 2015, making it one of Canada's top performers.
"The days of America's housing surplus are over," says Peter Hall, Chief Economist, EDC. "We're seeing a growing housing deficit in the US right now. That, coupled with a lower Canadian dollar, will further boost demand for BC lumber in 2015."
"The mountain pine beetle infestation continues to be a challenge for forestry in BC," says Hall. "That being said, there is enough demand for Canadian quality pine that higher prices should offset the lower volume production."
Metals and ores will see the most growth in the province this year. With the opening of new mines, and other mining expansion, the sector is expected to post 13 per cent growth in 2014. EDC is forecasting 3 per cent growth for the sector in 2015 as new mines reach their full potential.
Agriculture and food exports also saw big increases in BC this year, with demand from emerging markets driving it to 11 per cent growth.
"British Columbia has the most diversified exports to emerging markets in Canada," says Hall. "This is connecting the province to high-growth markets and the growing consumer appetite of the swelling middle class in these regions. It's a powerful dynamic that will energize demand for a wide range of goods and services. Demand for food is on the leading edge of this new growth. As such, exports of BC's agri-food will continue to rise in 2015 and for many years to come."
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.
Export Development Canada