Exporter Confidence

Ottawa, ON - October 13, 2000 -- Canadian exporters are expressing more cautious optimism in their international opportunities than they were six months ago, with Quebec companies more confident than those in other regions according to the latest exporter survey conducted for Export Development Corporation (EDC) by Ipsos-Reid.

The survey of 430 companies found that the overall trade confidence index (TCI) is down slightly from a high of 85.3 in March. The current index of 82.1 is indicative of a world economy approaching capacity, with sales growth moderating in most industrial sectors. However, a score of 82.1 still reflects a high degree of confidence among exporting companies.

"Last spring, we told exporters that global conditions could not get any better for Canadian exporters," says EDC chief economist Stephen Poloz. "The leveling off of the trade confidence index points to a moderation in economic growth, but a continued expansion in Canada's export sales."

The TCI is a summary measure that takes into account views on economic conditions and expected sales growth within Canada and throughout the world. Those surveyed represented a cross section of industry sectors and companies of all sizes.

Entitled Horizons, the survey is the first of its kind to gauge confidence in the Canadian export community. The results enable exporters to see how their company's views and plans compare to others' expectations of foreign markets and growth prospects and perceptions of the risks or impediments.

Other findings include:

• Quebec companies were more confident on the whole than exporters in other Canadian regions, though their confidence was also down slightly since March.
• Confidence in Canada's ability to develop e-commerce solutions has increased by several points since March.
• Information technology was the only sector to show an increase in overall confidence.

These are the findings of an Ipsos-Reid poll conducted between July 25th and August 17th, 2000 on behalf of the Export Development Corporation (EDC). The poll is based on a randomly selected sample of 430 Canadian exporters. With a sample of this size, the results are considered accurate to within 177 4.7 percentage points, 19 times out of 20. The margin of error will be larger within regions and for other sub-groupings of the survey population.

EDC provides trade finance and risk management services to Canadian exporters and investors in up to 200 markets. Founded in 1944, EDC is a Crown corporation that operates as a commercial financial institution.

Exporters interested in participating in the next survey should contact EDC at 1-888-336-9615.

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For more information on this news release, please contact:

Mike Colledge
Senior Vice-President
Ipsos-Reid
(613) 241-5802

OR

Melanie Kwong
EDC Corporate Communications
(613) 597-8542
www.edc.ca