Performance Indicator 3: Exports

Performance Indicator Three is based on the inflation-adjusted value of goods and services exported to other provinces and countries. Higher export levels earn better ranks.

In 2007, BC ranked ninth in per capita exports, as it did in 2006. Alberta ranked first and Saskatchewan second among the provinces. British Columbia was surpassed by Quebec in 2002 and by Prince Edward Island in 2006.

BC performs poorly, in relative terms, on exports even if the population and inflation adjustments on this indicator are removed. BC's average annual growth in exports of goods and services between 1998 and 2007 earned the eighth place rank.

Note: The preliminary estimate for 2007, upon which this update is based, will be revised when final data are released in the fall. The fall release will also include a historical revision of 2004-2006 data.

International Comparison

In 2005, British Columbia ranked in the middle of the pack (17th) of Organisation for Economic Cooperation and Development (OECD) jurisdictions with $8,520 of international exports per person. This was roughly four times as large as bottom ranked Turkey but only about 30 percent of top ranked Ireland.

British Columbia ranked better, on average, during the 1990s when it earned either 12th or 13th place. In 2000 BC was overtaken by the Czech Republic, by Hungary and Germany in 2001, and by the Slovak Republic in 2002.

A Canadian average is not available for this indicator because it is constructed with the Fisher index formula.

Trade with Asia

Volume II of the BC Progress Board's 2005 interim benchmark report, Special Focus on BC Trade and Emerging Asian Opportunities, highlighted BC's growing trade with Asian countries.

Overall, British Columbia has benefited from the rapid expansion in China and India, by creating strong demand for many of BC's export products while effectively driving commodity prices up world-wide. India and China have emerged as BC's strongest growth markets, with exports to India increasing seven fold and exports to China three fold over the last decade.

Note A Canadian average is not available for this indicator because it is constructed with the Fisher index formula.

British Columbia is well-positioned to take advantage of the opportunities offered by continued Asian economic growth. Our welleducated workforce and stable institutions should provide domestic industries with the opportunity to move up the value chain in manufacturing to take advantage of low-cost Chinese component imports, to keep operating costs low, and to thereby expand both resource exports and diversification into other highervalue product lines. To make the most of this opportunity, BC needs to ensure our general economic foundations remain strong, and that the province anticipates and responds to the challenges presented by growth in emerging markets.

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