The province's exports plunged 42 percent in 2009 amid the global economic crisis. "After a 42 percent plunge last year, Newfoundland is beginning the rebound process, "said Mr. Hall during a speech in St. John's."Even with growth of 15 percent and 7 percent in 2010 and 2011, exports will remain 28 percent below peak 2008 levels. Like many provinces this year, it's a slow climb out of the canyon, but Newfoundland is definitely moving in the right direction."
The industrial goods sector accounts for 21 percent of the province's international exports, and EDC believes the sector will grow by 29 percent in 2010 and 6 percent in 2011.
"The outlook for the province's industrial goods, mostly iron ore, has once again turned on a dime," Mr. Hall said. "Global steel production, the main demand driver for iron ore, plunged 8 percent in 2009. With global industrial production now rebounding from last year's depressed levels, steel demand is on the rise."
Production cutbacks at IOC and Wabush will be reversed this year, and EDC anticipates higher export volumes through 2011.