Exports forecast to rise 4% in 2004 (November 20, 2003)

Ottawa, ON — Export Development Canada (EDC) forecasts an increase of 4% in exports in 2004, ending a three-year slump.

EDC also predicts that global economic growth will accelerate to 3.9% next year from 3.1% in 2003, and that Canada’s economy will expand by 3.4% in 2004, up from 2.2% this year.

It also predicts that exports to the United States will rise by 3%.

Relative gains to other markets are forecast to be much higher. EDC estimates sales gains of 16% to China and the four major Association of Southeast Asian Nations (ASAN) countries of Malaysia, Thailand, Indonesia and the Philippines, as well as gains of 14% to Japan, 11% to Hong Kong, Singapore, South Korea and Taiwan, and 17% to other Asian countries.

The current higher value of the Canadian dollar compared to the U.S. dollar is the spark needed for companies to invest more in productivity-enhancing machinery and equipment, says EDC, because most of the machinery that companies buy is imported.

EDC is a federally owned company that provides financing to exporters.