(Ottawa) Canadian exporters' business confidence hit a historic low in the latest Export Development Canada (EDC) survey, due to the economic shock caused by the COVID pandemic – 19.
Posted on 25 June 2020 at 737 Updated to 12 h 50
The Canadian Press
The federal export credit agency indicated that its commercial confidence index fell to 56, 0 points, against 69, 3 points at the end 2019.
The economy went into recession earlier this year after public health containment measures forced the closure of non-essential businesses in an effort to slow the spread of the pandemic.
EDC’s survey, which is conducted twice a year, found that almost three-quarters of those surveyed said the pandemic had a negative impact on their sales. Half of them reported a “strongly negative” impact.
EDC noted that 14% of the companies reported that their sales increased due to the pandemic.
In addition to COVID – 19, the investigation suggested that fears of protectionism increased trade tensions and economic concerns also contributed to the decline in respondents' confidence.
“COVID – 19 is responsible, not surprisingly, but beyond the figures, our survey clearly shows the full influence of the pandemic and containment measures on Canadian exporters, “said EDC deputy chief economist Stephen Tapp.
The online survey conducted from 6 to 26 may included responses from 823 Canadian exporters.
In a forecast released last week, EDC said it expects exports to fall by 20, 3% this year due to the pandemic, before increasing by 19, 0% next year.
The drop in EDC in 2020 should include a drop in 30% Of auto exports and a drop of 33% in the energy sector. Aviation industry exports are forecast to decrease by 35%.
Excluding the energy and automotive sectors, exports should decrease by 14 % this year.
