Export Development Canada says trade confidence index fell to 56.0 compared with 69.3 at the end of 2019, in a June 25, 2020 story. (File photo by THE CANADIAN PRESS)

Trade confidence plunges due to pandemic, EDC index hits all-time low

Canadian exporters surveyed

OTTAWA — Export Development Canada says trade confidence among Canadian exporters hit all-time low in its latest survey due to the economic shock as a result of the COVID-19 pandemic.

The export credit agency says its trade confidence index fell to 56.0 compared with 69.3 at the end of 2019.

The economy plunged into recession earlier this year after public health restrictions forced the closure of non-essential businesses in a bid to slow the spread of the pandemic.

The survey, which is conducted twice a year, found that almost three-quarters of respondents said the pandemic has had a negative impact on their sales, with half of those reporting a “high negative” impact.

EDC noted that 14 per cent of businesses said they’ve seen stronger sales due to the pandemic.

In addition to COVID-19, the survey suggested worries of increased protectionism, trade tensions and economic concerns also contributed to the declining confidence of the survey respondents.

“It’s not surprising that COVID is the culprit, but looking beyond the headline numbers, our survey’s details clearly show just how significant the pandemic and related containment measures have been for Canadian exporters,” said Stephen Tapp, EDC’s deputy chief economist.

The online survey conducted from May 6 to May 26 included responses from 823 Canadian exporters.

In a forecast released last week, EDC said it expects exports this year will fall 20.3 per cent due to the pandemic before rising 19.0 per cent next year.

The 2020 drop EDC is expected to include a 30 per cent plunge in automotive exports and a 33 per cent drop in the energy sector. Aerospace industry exports are forecast to fall 35 per cent.

Excluding the energy and auto sectors, exports are expected to be down 14 per cent this year.

This report by The Canadian Press was first published June 25, 2020.

Canadatrade

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

46 new COVID-19 cases reported Wednesday in Alberta

Province has completed more than 500,000 COVID-19 tests

Charges laid following shooting in Lacombe County

A man turned himself in to Rimbey RCMP after an incident on July 5

47 new COVID-19 cases Tuesday in Alberta, still 620 active cases

3 active COVID-19 cases remain in Red Deer

COVID-19: Central zone at four active

Alberta confirms 130 cases Monday

Sylvan Lake woman distressed after cat shot at with pellet gun, loses its eye

Warning: Photo may be disturbing to some. Evelina Cornell’s cat Ms Grey was shot in the face and hip

Grizzly bears in the dark as they try to share living space with humans: study

Grizzly bears in the dark as they try to share living space with humans: study

‘You haunt my dreams:’ Sex assault victim confronts ex-nightclub worker in court

‘You haunt my dreams:’ Sex assault victim confronts ex-nightclub worker in court

Alberta bill proposes major changes to union strike rules and funding

Alberta bill proposes major changes to union strike rules and funding

Alberta air force base to use goats, sheep to chew down unwanted vegetation

Alberta air force base to use goats, sheep to chew down unwanted vegetation

Calgary officer justified in fatal shooting of man having mental crisis: ASIRT

Calgary officer justified in fatal shooting of man having mental crisis: ASIRT

Gave up seat for Kenney to run: Premier defends hiring ex-MLA for trade office

Gave up seat for Kenney to run: Premier defends hiring ex-MLA for trade office

Southern Alberta hailstorm caused almost $1.2B in damage: insurance bureau

Southern Alberta hailstorm caused almost $1.2B in damage: insurance bureau

Kanye West breaks with Trump, claims 2020 run is not a stunt

Kanye West breaks with Trump, claims 2020 run is not a stunt

Most Read