Canadian exporters facing downpour of risk, flood of opportunity
This is according to Export Development Canada’s (EDC) latest semi-annual Global Export Forecast (GEF).
EDC reports that while geo-political instability will cause some businesses to hesitate growing their trade business or making foreign investments, overall world growth will press on, continuing to gain momentum in the short term despite the uncertainty.
“This is a story of risk, opportunity, and what ifs,” said Peter Hall, EDC Senior Vice President and Chief Economist.
“Even as the architecture of international commerce is being questioned in the political space, we are convinced that the business end of world economy will continue to gain steam in the short term.”
EDC is projecting world growth to rise from 3.5 per cent this year to 3.8 in 2018 – an upswing in momentum as growth has hovered around 3.5 per cent during the last five years.
However, rising protectionism, namely in the European Union and the United States, is putting this global growth story at risk.
“Is this the beginning of the end for globalization? That’s highly unlikely – the cost is massive, and everyone gets a bill in the mail. Remember, a wrecking ball doesn’t only swing one way – it swings back,” added Hall.
“The message that EDC has for Canadian companies is to stay in the game and win the contracts that others have been frightened away from.”
Emerging markets will be big beneficiaries of this increased global growth and indicators point to new possibilities for Canadian companies. ■