Western Canada leads country in EDC business volume
Calgary, AB -- Western Canadian exporters accounted for the largest share of Export Development Canada's (EDC) busi...
Calgary, AB — Western Canadian exporters accounted for the largest share of Export Development Canada’s (EDC) business volume for the first six months of 2005, according to the mid-year financial results.
Of the total EDC business volume of $25.7 billion, Western Canada accounted for $8.9 billion, an increase of 12% over 2004. Across Canada, Ontario accounted for $8.1 billion (decreasing 13% over 2004), Quebec accounted for $7.2 billion (decreasing 13% over 2004), and Atlantic Canada accounting for $689 million (increasing 85% over 2004).
The greatest growth in Western Canada was found in the energy sector, with a significant increase of 44% over the same period in 2004. In the first half of 2005, EDC reported a business volume of $2 billion for the sector, compared to $1.4 billion over the same period last year.
“The record oil prices have spurred a strong increase in production from Western Canada, accounting for the surge in energy sector exports from that region,” said Linda Niro, regional vice-president, Western Canada. “But more importantly, we are seeing growth in almost all sectors, attesting to Western Canada’s diversification and productivity.”
These findings are consistent with EDC’s Spring Trade Confidence Index results, which showed that exporters in Western Canada were the most positive about upcoming export business.
In addition, strong growth was found in the base/semi-manufactured goods sector, increasing by a significant 33%. The base/semi-manufactured goods sector (a broad sector encompassing unfinished products such as chemicals, ores and minerals, petroleum products, building materials, textiles, plastics and rubber) has traditionally accounted for nearly half of the total EDC volume from the region. In the first half of 2005, the sector’s volume was $4.1 billion of the total regional $8.9 billion, up from $3.1 billion in 2004.
While Canada’s overall export growth has slowed in 2005, EDC has so far recorded 20% growth in its business volumes in opportunity-rich developing markets. EDC’s total business volume in the first half of 2005 reached $25.7 billion, slightly below the 2004 figure of $26.1 billion, reflecting the challenges of higher energy costs and a stronger dollar felt by Canada’s exporters.
In the first half of 2005, EDC supported $6.4 billion in trade in developing markets, compared to $5.3 billion in 2004.
EDC is a Crown corporation that provides trade finance and risk management services.