Every other week, we release 5 Minutes for Business, a publication written by Hendrik Brakel, our Senior Director of Economic, Financial and Tax Policy. In these publications, Hendrik briefly describes current issues that affect the Canadian economy and provides insight on what it will mean for Canadians today and the future. In this week’s edition, he looks at the export revolution hidden behind this recession, where exports are up in many sectors.
Could this actually be positive for Canada?
The first five months of export data show a 31% decline in oil, with natural gas falling 40%—a devastating hit to Canadian exports. The big question is whether the positive effects of a weaker dollar and a stronger U.S. economy can make enough of a difference to offset this downfall. So far, Canada’s export manufacturers have ramped up production and are in overdrive. The strongest contributor to growth is the automotive sector, rising 9% this year thanks to a resurgent U.S. economy. And it’s not just autos; exports of machinery and equipment are up 9%, electronic equipment is up 15% and aircraft is up a staggering 33%. But, will this growth make up for the huge decline in energy? Read 5 Minutes for Business to find out.
For more information, please contact Hendrik Brakel.