Quebec has the most diversified economy among all of Canada’s provinces in terms of what it sells to the rest of the world, and that diversification is helping it prosper in international markets. Whether it’s commodities such as metals and ores and forestry products, or manufactured goods such as aircraft and parts, the value of Quebec’s exports is on track to grow by 10 per cent this year and a further eight per cent in 2016.
Quebec’s fastest growing export sector is aerospace, thanks to strong demand from around the world for aircraft and parts made by companies big and small. With just over one in every seven export dollars earned by Quebec coming from this sector, forecasts of 33-per-cent growth this year and another 17 per cent in 2016 are definitely good news for the province’s economy as a whole.
But it’s not just aerospace that’s flying high. Another strong sector is chemicals and plastics, which accounts for roughly 10 per cent of Quebec’s total exports, and which will also enjoy double-digit growth this year. EDC forecasts that sector’s exports will grow by 11 per cent this year and another seven per cent in 2016. Throw in this year’s five-per-cent growth in exports of metals, ores and other industrial products – the province’s single largest export sector – and an even better six-per-cent growth in 2016, and it’s easy to see why Quebec’s exports should be up by more than $7 billion this year.
As is the case for other provinces, Quebec’s export boom is being driven in large part by the growing strength of the U.S. economy, coupled with a weaker Canadian dollar that gives many exporters a price advantage when selling stateside. More than 70 per cent of Quebec’s exports go to the United States, with nearly half of those destined for just seven states, led by New York. Growing demand for new homes in the U.S. is helping to offset reduced demand for newsprint and pulp exports, giving Quebec’s forestry sector an overall gain of six per cent in 2015 and prospects for four-per-cent growth next year.
And there’s more good news: EDC expects healthy growth in the U.S. economy for at least the next two years, so even with a slightly stronger Canadian dollar forecast for 2016, things look good for most Quebec exporters next year. You can find all the details about what’s in store for Quebec, along with forecasts for the other provinces, 11 key sectors and an analysis of the main factors affecting the global economy, by visiting EDC’s Global Export Forecast Fall 2015 report page.