Canadian Exports to Gain 5.3 Per Cent

Canada’s exports of goods and services are poised for a 5.3-per-cent gain in 2014, paced by a cheaper dollar and higher shipments of lumber, aircraft and machinery, according to a new Export Development Canada survey.

However, the federal export lender is downgrading its expectations for this year in a semi-annual export forecast being released Tuesday.

The EDC said exports would grow 4.4 per cent a year, down from the 8-per-cent gain it had forecast just six months ago.

Canadian exports stalled out in 2012 and have struggled to regain momentum ever since. Canada posted a 20th consecutive monthly trade deficit with the rest of the world in August.

But the EDC said the trend is poised to change in 2014.

“Conditions are already ripe for decent Canadian export growth,” EDC chief economist Peter Hall said. “The loonie is weakening, our dominant export market is leading the global growth story, key leading exports are already surging and demand for resources remains strong.”

Mr. Hall added that pent-up demand and higher confidence levels would also help drive exports, led by forestry products (expected to increase by 11 per cent), industrial machinery (up 9 per cent) and aircraft (up 9 per cent).

At the other end of the spectrum, the EDC said fertilizer exports would fall 5 per cent due to lower prices, and autos and advanced technology products would post minimal gains of 1 per cent...

This has been excerpted from a 29 October 2013 article by the Globe and Mail, and its available in its entirety at: (subscription may be required).