EDC’s April release of the Global Export Forecast report shows Ontario as Canada’s export leader over 2016. A number of factors are driving the predicted 7% growth for Ontario industry including a low Canadian dollar, a high sales demand from the U.S. and a healthy auto sector.
The auto sector, which accounts for 40% of Ontario’s exports, could see growth as high as 10%. This movement is reassuring for the industry reliant Niagara economy.
The Global Export Forecast Report
The report explores which foreign markets offer the best opportunities to Canadians over 2016 and is released twice yearly in April and October. It’s major function is to explore the forces moving the world economy and their effect on Canadian exporters. The report shows a solid forecast for Ontario’s exports, especially automotive, industrial machinery and equipment (+9%) and metals/industrial products (+5%).
In a quote from EDC’s Chief Economist, Peter Hall explains: "High income growth, high employment, rock-bottom gas prices, and considerable pent-up demand caused by post-recession thrift are all combining south of the border to create the perfect recipe for demand. This is having a considerable impact on Ontario's exports, and we expect that demand to continue going forward, not just in the auto industry but most sectors of Ontario's economy."
The strong US Economy is driving export growth
The strength of the U.S. economy in combination with our competitive Canadian currency is supporting this export growth. American consumers are “in great shape” according to the report, enjoying new jobs, new incomes, real wage gains and reduced interest costs. At a commercial level, the depreciated loonie is sparking US sales in a number of other sluggish industries like forestry, agri-food and aerospace.
New Niagara foreign trade zone designation
This exporter growth trend is important for Niagara, who was recently appointed a free trade zone by the Canadian government. This pinpoints the region as an ideal trading zone for those exporting and importing through Ontario. To read more about this destination and the incentives available click here.
This report offers a real numbers outlook for the industry based communities located in Niagara and shifts confidence in the local economy. Interested in relocating your Niagara industrial business? Browse available Niagara industrial properties here.