Confidence among Canadian exporters has risen to its highest level in more than 20 years amid growing optimism that a sustained global economic recovery is under way, according to a survey by Export Development Canada (EDC) on Thursday.
EDC’s trade confidence index rose 19% from late 2020 to mid-2021, the biggest increase in six months since the survey began in 1999, the agency said. The recovery appears to be based in all parts of the country, he said.
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“It’s unbelievable that this kind of rush is happening. It really tells us that everyone is equipped for what is coming in the second half of this year,” said Peter Hall, chief economist at EDC.
Canada’s economy – like that of many of its peers – is expected to grow in the second half of 2021, as widespread public vaccinations allow businesses to reopen and consumers begin to plunge into pandemic savings.
A strong recovery south of the border is also expected to help. A growing share of companies reporting orders from customers in the United States, Canada’s largest trading partner, had improved in the past six months, EDC reported.
And 65% of respondents said they plan to export to new markets, with top destinations in the UK and Australia. Exports account for about one third of Canada ‘s gross domestic product.
However, concerns remain, particularly the strong Canadian dollar – which hit a six-year high earlier this month – and concerns about trade protectionism, especially US President Joe Biden’s “Buy America” plan, have been dispelled. China-Canada relations.
The survey was conducted from April to June, covering a period that saw new locks amid a harsh third wave of Covid-19 infections that followed the early stages of reopening.