Strong loonie shifting production offshore: EDC

Canadian firms have been coping with the loonie's rising value by shifting more of their production and sales offshore, according to a report issued Thursday.

Export Development Canada says sales from foreign affiliates of Canadian firms grew by more than twice the rate of domestically originated exports between the years 2000 and 2008.

That's a time when the loonie appreciated from the low 60-cent levels early in the decade to above parity with the U.S. currency during the 2008 commodity boom.

The EDC report says many Canadian firms responded by shifting capital offshore.

The study shows that overseas investment assets by Canadian firms grew to nearly $650 billion during the period, up from about $356 billion earlier.