According to an Export Development Canada forecast, rising prices of B.C.’s key resource exports will lead to double-digit export growth in the province.
Exports are projected to rise 14% this year and 13% next year, primarily from a recovery in the forestry sector, which accounts for 30% of B.C.’s exports. The sector is forecast to grow 14% this year and 13% next year, based on an expected recovery of the U.S. residential housing market later this year and increased exports to China.
“Exports to China will continue to expand rapidly, thanks to building code amendments that now allow for the use of wood frames in that country,” said Peter Hall, EDC’s chief economist. “Next year should see even stronger export growth as U.S. housing starts rise over one million units.”
In 2009, B.C. lumber exports to China reached 1.63 million board feet, valued at $327 million. The B.C. government has noted that Chinese exports continue to increase. Lumber shipments in 2010’s first quarter were double those in 2009’s first quarter.
The energy sector, which accounts for 27% of B.C.’s exports, is forecast to rise 20% this year and 17% next year, driven mainly by increasing natural gas prices and coal production. The EDC forecasts natural gas prices to rise 40% this year alone.
Nationally, Canadian exports are forecast to rise 11% this year and 7.6% next year with the economy growing 2.5% this year and 2.9% next year. Global growth is projected to grow 3.7% this year and 4.2% in 2011.