Canada's economic future depends on businesses expanding to high growth emerging markets

Rick Waugh, CEO, addresses Scotiabank's 181^st Annual General Meeting

HALIFAX, April 9, 2013 /CNW/ - Canadian companies need to seize the current opportunity to expand beyond traditional trading partners to high growth emerging markets and make this a priority, said Scotiabank's CEO Rick Waugh, while addressing shareholders at the Bank's Annual General Meeting.

Mr. Waugh explained that because of the realities of the global economy Canadian companies have to be in the places where economic growth is happening.  He said that "by mid-century, emerging markets are predicted to account for 70% of global trade.  Right now, less than 12% of Canada's exports go to those markets." He went on to say that GDP growth alone does not tell the whole story but that "these emerging markets have great demographics including fast-growing populations, lots of young people and a rapidly expanding middle class."

A company expanding abroad creates skilled jobs and other benefits here in Canada too and Mr. Waugh said that "this has a significant ripple effect through increased tax revenues, spinoffs for local businesses, money and volunteers for charities and contributions to our culture and the arts." This all leads to an environment that attracts highly motivated and educated workers and entrepreneurs from around the world.

Boosting productivity is another reason that Canadian companies should think about expanding abroad and he used Scotiabank's experiences as an example.  Scotiabank improved efficiency by centralizing functions.  Scotiabank improved innovation by "adopting best practices from our acquisitions around the world."  The Bank is also driving "innovation by building a diverse workforce and fostering a culture of collaboration across it." Looking abroad for acquisitions has allowed us to build scale which has "allowed us to grow much faster than if we'd only looked in Canada."

Mr. Waugh said that Canadian companies need to seize the international opportunities available to them "because Canada's window of opportunity is open now, and the timing will never be better." While there is support from governments and even the central bank, the private sector has to lead.

Mr. Waugh concluded by saying that "right now, Canada's brand is stronger than it's ever been" and "people want to do business with us" because we have good fiscal and economic health, a civil, democratic society that values diversity, free and open markets and one of the soundest banking systems in the world.  "The economic need is clear…the business opportunities in emerging markets are diverse and plentiful…and the benefits are tangible."

About Scotiabank
Scotiabank is a leading multinational financial services provider and Canada's most international bank. With more than 82,000 employees, Scotiabank and its affiliates serve some 19 million customers in more than 55 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. In December 2012, Scotiabank became the first Canadian bank to be named Global Bank of the Year and Bank of the Year in the Americas by The Banker magazine, a Financial Times publication. With assets of $736 billion (as at January 31, 2013), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.

Image with caption: "Scotiabank CEO Rick Waugh meets with students ahead of the Bank's Annual Meeting of Shareholders. (CNW Group/Scotiabank)". Image available at: http://photos.newswire.ca/images/download/20130409_C3688_PHOTO_EN_25341.jpg

SOURCE: Scotiabank

Ann DeRabbie
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Andrew Chornenky
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