According to the Global Export Forecast released Wednesday by Export Development Canada (EDC), Newfoundland and Labrador's international exports are forecast to grow by 5 percent this year and 7 percent in 2013 after a 31 percent growth rate in 2011.
"The province's export sector, which is dominated by commodities, benefited from skyrocketing energy prices and strong demand for iron ore last year, sending overall foreign sales soaring," said Peter Hall, Chief Economist of EDC. "A continued surge of industrial goods exports will partly offset sluggish energy sector sales this year...the outlook for industrial goods is bright both this year and next, with higher export volumes more than offsetting softer prices," Hall said. "Foreign sales of iron ore will continue to build as a result of ramped-up production. Sector prospects beyond 2013 continue to be bright, thanks to significant investment by New Millennium Capital Corporation and Tata Steel."
The three key exporting sectors in Newfoundland and Labrador are energy, accounting for 66 percent of the province's total exports; industrial goods, accounting for 25 percent; and agri-food, accounting for 7 percent. EDC's forecast calls for the province's energy sector exports to grow by 4 percent in 2012 and 2 percent in 2013.