This occurred against the backdrop of tightening restrictions on business activity in several provinces to contain the spread of COVID-19.
By the end of the year, the number of exporting enterprises was up 19.9% from the low in April, but it was still 3.5% below pre-pandemic levels observed in February.
December's rise in goods exporters was led by enterprises with fewer than 50 employees (+2.4%). These exporters, which are generally less integrated in global supply chains, had been among the most impacted during the initial months of the pandemic.
Number of exporters to the United States almost reaches pre-pandemic levels
The number of enterprises that exported goods to the United States rose 3.9% in December to reach 16,627. After an almost 20% decline from February to April, the number of exporters to the United States in December had almost fully recovered to February levels (16,632).
However, in terms of value, exports were still 7.2% below their February levels on a balance of payments basis.
Among other major trading partners, the number of exporters to Spain (+9.3%), Italy (+3.5%), Japan (+3.5%) and China (+3.5%) also grew month over month in December. The number of exporters to each of these countries was above February levels at year-end.
At the global level, a region that has been relatively less affected by the pandemic is Oceania. When the number of Canadian exporters is compared between December 2019 and December 2020 by region of destination, Oceania was the only region showing an increase (+2.8%).
This slight growth was primarily attributable to small exporting enterprises (fewer than 50 employees)—their number went up 10.9% over this period, led by exporters of electronic and electrical equipment and parts.
Alberta and British Columbia see the largest monthly increase in exporters
An enterprise can have multiple establishments located in different provinces or territories and operating in various industries. Most provinces posted month-over-month growth in the number of exporting establishments in December, with the largest increases observed in the western provinces of Alberta (+98) and British Columbia (+80).
This growth was led by establishments from the mining, quarrying, and oil and gas extraction sector and was mainly among those exporting to the United States. The number of exporters in Quebec (+38) and Ontario (+28) also went up, but to a lesser extent.
In relative terms, only the Atlantic region (+3.6%) and Manitoba (+3.0%) were above their February levels by the end of the year. The growth in the Atlantic region was tied to the agriculture, forestry, fishing and hunting sector, while Manitoba's increase was related to wholesale trade.
Several of Manitoba's wholesale trade establishments export agricultural products such as wheat, soybeans, and rape or colza seeds. Amid strong global demand and rising prices, the total value of Manitoba's exports of these products has gone up significantly year over year. ■