November 18, 2008

New Brunswick’s international export growth will outshine all other provinces in 2009

MONCTON, N.B.

After surging 26 per cent in 2008, New Brunswick’s international export growth is expected to lead the country with eight per cent growth in 2009, according to a provincial export outlook by Export Development Canada (EDC).

“Huge declines in oil prices will have a marked impact on the province’s exports given the energy sector’s leading role in New Brunswick,,” said Peter Hall, EDC vice-president and chief economist.

“However, we expect that new export activity and a significantly lower Canadian dollar will help to preserve overall growth in 2009. Stresses in the forestry and metal mining industries will persist through 2009, a direct result of the spreading global economic slowdown.”

The energy sector dominates New Brunswick’s total international exports, and is expected grow by 45 per cent in 2008 on the continued strength of U.S. gasoline prices. Looking forward, operations at the LNG terminal in Saint John will commence early in 2009 and natural gas exports will also benefit from additional capacity at the McCully natural gas field.

Overall, energy exports will increase nine cent in 2009 despite falling energy prices as the LNG plant adds an estimated $2.5 billion to exports, and as electricity production stabilizes.

Conditions remain challenging in the forestry sector, which accounts for 16.5 per cent of the province’s exports. After declining 21 per cent in 2008, forestry exports are expected to expand by eight per cent in 2009. Wood product exports will see limited gains in 2009, as U.S. construction activity remains low.

DCN News Services

Print | Email | Comment