Soaring Aerospace Industry Will Give Quebec Steady Export Growth This Year and Next
Quebec’s healthy mix of export sectors will continue to benefit the province as export growth is forecast to increase by five per cent both this year and next.
The province’s aircraft and parts sector will lead the way, according to Export Development Canada‘s (EDC) semi-annual Global Export Forecast.
With Bombardier on track to deliver its new CSeries aircraft in the second quarter of 2016, growth in the aerospace sector is forecast to increase to 14 per cent this year, followed by eight per cent in 2017.
“Bombardier isn’t alone in fueling the growth in the aerospace sector,” said Peter Hall, chief economist at EDC, Canada’s trade finance agency. “Equipment and services is another strong sub-sector that will also support Quebec’s upswing in exports this year. Montreal-based CAE, for example, has lined up large simulator contracts with the German Navy and U.S. Air Force this year.”
As is the case with most provinces, Quebec’s export story is very much tied to the United States. The surging U.S. economy, and the increasing demand that comes with it, will continue to be a key growth driver for Quebec businesses.
“The vast majority of Quebec’s exports go to the U.S., so growth south of the border is clearly a good news story for the province,” said Hall. “The price advantage from a lower Canadian dollar will continue to provide export-minded companies with competitive opportunities.”
For resource-based sectors, the outlook is also relatively positive. Quebec’s largest export sector—metals, ores, and other industrial products—accounts for roughly one-quarter of all its exports and is forecast to grow four per cent both this year and next.
Quebec’s forestry sector is also doing well, largely as a result of continuing growth in housing starts in the U.S. This sector is expected to see growth of four per cent this year and five per cent in 2017.