A slowdown in global economic growth is starting to impact B.C.’s exports.
According to a Central 1 Credit Union report, international exports from B.C. fell 1.1% in September from August to $2.35 billion on a seasonally adjusted basis. Sluggish economic activity, particularly in the U.S., was cited as the main cause of the decline with trends suggesting exports in forestry, industrial goods and materials have declined after modest post-recession rebounds.
Two areas reporting strong gains were in the energy and agricultural sectors.
Despite the declines, exports have grown 13% in the past year. However, Central 1 noted exports remain at multi-year lows. Excluding last year, exports are at their lowest level since 2001.
The report forecasts B.C.’s exports to grow by 2.8% in 2011, dampened by a tepid recovery in the U.S. consumer market and a higher Canadian dollar, relative to the greenback.
B.C.’s trade deficit is likely to grow next year as demand for imports will grow at a faster pace than exports. In the third quarter of 2010, B.C. had a trade deficit of $2.3 billion, up from $2 billion in the second quarter.