Canada non-resource exports to surge in 2016: export agency
By David Ljunggren
OTTAWA (Reuters) - Canadian non-resource exports should post healthy gains this year, the country's trade financing agency said on Monday, a development the central bank is counting on to help revive an economy hobbled by weak global energy prices.
Export Development Canada predicted the consumer goods, automotive and aerospace sectors would post double-digit growth in 2016 on the back of a robust U.S. economy. Industrial machinery exports should advance by 7 percent, it said.
Overall exports are seen rising a modest 2 percent this year, held back by a 14-percent drop in the value of energy shipments. Canada is a major energy exporter and has been hit hard by slumping crude oil prices.
Peter Hall, the EDC's chief economist, said while commodities are struggling, consumers' need for homes, furnishings and transportation are rising again.
"Non-resource exports are critical at the moment," Hall said.
The Bank of Canada is relying on non-energy exports to help make up for the damage done by low oil prices and rebalance the economy. The central bank said last week it could take more than three years for the country to recover.
EDC forecast aircraft and parts exports would increase by 13 percent, in part due to Bombardier Inc's (BBDb.TO: Quote) new CSeries passenger jet entering into service, as well as increased demand for flight simulators and services from CAE Inc (CAE.TO: Quote).
The agency says motor vehicles and parts exports should rise by 10 percent as U.S. shoppers replaced older models, while consumer goods should advance by 14 percent. Continued...