Bad news throughout 2015—including a technical recession in the first half of 2015, the falling price of oil and a low loonie—has taken its toll on how business leaders across Canada feel about the economy, and pessimism has climbed to a level not seen since the first quarter of 2009.
In the final quarter of 2015, half of all professional accountants in leadership positions reported feeling pessimistic about the Canadian economic outlook over the next year, according to the results of a CPA survey released January 28.
This is up a full 31 percentage points from 19% when the survey was conducted at the same time last year.
The good news is that pessimism is far lower than it was in Q1 2009, when 83% of those surveyed reported feeling pessimistic.
In this most recent survey, the price of oil was cited as the biggest challenge, followed by general economic uncertainty.
“Uncertainty dominates,” said CPA Canada president and CEO Kevin Dancey. “For many respondents, that uncertainty represents strengthening storm clouds.
“It’s hard to chart a course for success without clarity, and right now there is no clear indication when the ramifications associated with low oil prices and the resulting insecurity will ease.”
On the flip side, 13% of respondents report feeling optimistic, down 20 percentage points compared with 33% in Q4 2014.
The respondents identified their priorities for the next 12 months, and increasing sales within Canada came in top spot (25%). Reducing costs (18%), improving productivity (12%), retaining customers (8%) and increasing sales to the U.S. (7%) were also cited as goals.
