Surging U.S. economy will help Ontario exports realize growth of seven per cent this year, five per cent in 2015
LONDON, Ont.—A new report suggests a surging United States economy will help Ontario exports realize growth of seven per cent this year and five per cent in 2015.
The report, from Export Development Canada (EDC), says the increase is being driven primarily by strong U.S. demand for industrial machinery.
The EDC says those exports are projected to grow by 10 per cent this year and jump to 17 per cent in 2015, making it the biggest mover in Ontario’s economic forecast.
EDC chief economist Peter Hall says rising U.S. industrial output will also boost Ontario’s chemicals and plastics industry.
He predicts those sectors will grow by 12 per cent this year and five per cent in 2015.
Hall also says the auto sector—which accounted for 35 per cent of all Ontario exports in 2013—should grow by eight per cent this year and another three per cent in 2015.
“Considering the competitive factors and capacity constraints, the sector is continuing to perform well,” said Hall.
“A lower Canadian dollar and increasing U.S. auto sales will help to support the industry’s growth, but it will continue to face competition from Mexico and southern US states.”
Hall cautions that without considerable new investment, “Ontario is bumping in to capacity constraints that will limit auto sector export growth next year.”
Mining and metals, the province’s second largest sector, is forecast to grow by three and six per cent in 2014 and 2015 respectively.
The EDC says gold mining will continue to see strong growth during 2014 and 2015, although lower commodity prices will put pressure on future production plans.