Newfoundland and Labrador will lead the country in export growth next year due to an expected rise in prices for oil and iron ore, Export Development Canada (EDC) says.
Atlantic Canada’s exports this year were driven by high demand and record prices in the region’s seafood sector, but a new global export forecast from the EDC predicts the energy and metal ore industries will drive Atlantic Canada’s export growth in 2017.
Next year, the EDC expects to see a swap in the top growth sectors in Atlantic Canada. While seafood exports will remain strong, prices have peaked, and energy and mining companies in the region will take the lead in terms of export growth next year due to an expected rebound from low commodity prices.
“Newfoundland and Labrador will benefit most from this switch,” said Peter Hall, chief economist at the EDC. “The province’s exports struggled in 2016 because of recent quota cuts in seafood exports, but the increase in mining output and higher oil prices is expected to completely offset this drop next year. The result will be 12 per cent growth in Newfoundland and Labrador’s exports in 2017, which will be the best provincial export performance in Canada.”