BURLINGTON and VAUGHAN, Ontario–A resurgent auto sector, high demand in the US, and a low Canadian dollar are driving Ontario’s exports to seven percent growth this year, the most growth of any province in Canada.
EDC’s semi-annual Global Export Forecast predicts that Ontario’s automotive products sector, which accounts for nearly 40 percent of the province’s exports, will grow by 10 percent this year, bolstered by record-high demand for light vehicles in the United States, and higher shipment volumes from assembly plants in Oakville and Windsor, which are now back in full operation following some down time for modernization and retooling.
“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,” said Peter Hall, EDC’s chief economist. “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.”
EDC’s forecast for Ontario’s exports is solid all around, with few sectors experiencing decline. Of note, the province’s exports of industrial machinery and equipment will see a boost of nine percent this year, while metals, ores, and other industrial products will increase by five percent. Again, this export growth is supported by a robust US economy and a competitive currency.
“If the locomotive of world growth is the US, Canada is the first wagon, with Ontario sitting firmly in the front row,” adds Hall. “This return of demand for manufacturing plays right into the strengths of Canada’s manufacturing heartland.”