American and Chinese demand for agri-food, auto parts shipments expected to drive exports forward over next two years
HALIFAX—Two of Nova Scotia’s top industries will drive the province’s exports to new heights over the next two years, according to a new Export Development Canada report.
According to the trade financier’s semi-annual Global Export Forecast, the Atlantic province’s exports will grow by six per cent this year, and by four per cent next year—largely as a result of its agri-food and automotive industries.
“Nova Scotia is having a very strong 2016 for exports, thanks to a thriving agri-food sector and strong motor vehicle and parts shipments,” Peter Hall, EDC’s chief economist, said. “The low dollar is definitely making Nova Scotia products more attractive to foreign buyers. Demand from the province’s two biggest export destinations, the U.S. and China, is rising rapidly to complete the good news story.”
Despite the recent slowdown in China, EDC expects Nova Scotia seafood to continue finding its way around the world to reach the Chinese market.
“China’s middle class is now larger than America’s, and the Chinese consumer’s appetite for high-quality seafood is acting as a boon for Nova Scotia’s seafood industry,” EDC said.
Nova Scotia’s agri-food industry is also expected to get a boost from the Comprehensive Economic and Trade Agreement (CETA) with the European Union, when the trade agreement is ratified early next year.
Meanwhile, the Atlantic province’s parts sector is reaping the benefits of strong demand for vehicles. The vehicle manufacturing sector in Nova Socita is forecast to grow by 10 per cent this year, and by two per cent next year.
EDC said the forestry products industry in Nova Scotia will also get a boost from demand south of the border.