Slowing growth in China and low natural gas prices contributed to B.C.’s May dip in export volumes, according to Central 1’s most recent B.C. Economic Briefing.
The report noted that B.C. saw a 1.1% monthly slide in total export dollar volumes in May.
That decline, it found, was led by a 7% drop in B.C.’s forestry-related exports and a 5% dip in energy exports.
Central 1’s analysis identified that May’s declines stemmed from a slump in product shipments rather than prices – notably in forestry, which has been hit by slowing growth globally.
The report found that the declines were somewhat offset by a 9% gain in exports of machinery and equipment.
However, it found that year-to-date growth is just 2.2% and predicted that if export trends hold steady, year-to-date activity will turn negative by July.
Central 1 predicted a “tempered” outlook for B.C.
“The European recession has deepened, pulling down exports and growth in emerging economies and in the U.S.,” it said. “Meanwhile, Chinese growth has also slowed, forcing authorities to implement stimulative policy measures.”
Finally, the report noted that B.C.’s natural gas exports were down 39% from 2011 on a year-to-date basis through May, reflecting a North American supply glut.
.jpg;w=120;h=80;mode=crop)