The following is excerpted from the 19 May 2010 news release by EDC.

British Columbia’s exports will grow at a double-digit pace in both 2010 and 2011 as commodity prices rebound and demand from the U.S. recovers, according to a Provincial Export Forecast released today by Export Development Canada (EDC).

“Brighter prospects for British Columbia’s forestry sector are around the corner thanks the reopening of idled pulp mills and the long-awaited revival of U.S. residential construction activity. This will help to lift overall exports by 14% in 2010 and 13% in 2011,” said Peter Hall, Chief Economist, EDC, during speeches in Surrey and Vancouver today.

Exports will also benefit from the opening of new gas plays, as well as developments in coal and metal mining, and the continued rapid economic expansion of Emerging Asia, especially China.”

The forestry sector accounts for 30 per cent of B.C.’s exports, and EDC expects the sector to see 14 per cent growth in 2010, the first growth in 5 years. EDC expects an additional 13 per cent growth in 2011. …

EDC expects Chinese pulp imports will again be an important sector growth driver in 2010 and 2011, although at a reduced pace compared to 2009 owing to increased competition from new capacity in Southeast Asia. North American and European pulp demand is expected to increase at the same time as a rebound in paper consumption from its historical low cycle. The province’s paper exports, by contrast, will drop sharply in 2010, as the closure of the Kitimat paper and paperboard mill early in the year will significantly curtail capacity.

The energy sector accounts for 27 per cent of B.C.’s exports, and is forecast to rise by 20 per cent in 2010 and 17 per cent in 2011. …

EDC expects B.C.’s coal exports to rise on increased production at various mines across the province, responding to better fundamentals. The opening of the Hermann mine and the re-opening of the Willow Creek mine next year are also expected to provide a further gain to production. Ongoing infrastructure spending in major Asian markets will continue to spur strong demand for hard coking coal, used in the production of steel. While EDC expects the 2010-11 contract prices to rise, the forecast notes that they will remain below the 2008-09 highs.

Canadian exports are forecast to rise 11 per cent in 2010 and 7.6 per cent in 2011. Nationally, economic growth is expected to rise 2.5 per cent in 2010 and 2.9 per cent in 2011. Internationally, EDC is forecasting global growth of 3.7 per cent in 2010 and 4.2 per cent in 2011. EDC’s Global Export Forecast is available at http://www.edc.ca/gef. …