The price of oil is the top challenge for Canadian economic growth for the eighth consecutive quarter, according to CPA Canada’s latest Business Monitor report, followed closely by uncertainty south of the border.
These factors have led to 50% of professionals across the country holding a neutral outlook for this country’s economy—the same as last quarter—and 29% saying they feel pessimistic. Only 21% say they are optimistic.
“The upcoming U.S. election and the protectionist trade winds associated with it are likely factors contributing to doubt or hesitation here in Canada,” said CPA Canada president and CEO Joy Thomas.
“Not only is the future unclear regarding trade policies with the U.S. but there are other challenges including Canada’s transition to a low-carbon economy and possible ramifications from the Brexit vote.”
When asked about prospects for their own businesses over the next 12 months, 47% of respondents said they were optimistic, compared with 46% last quarter. Sixty one per cent of those surveyed said they expect revenue growth over the next year, which is unchanged from last quarter. Fifty seven per cent said they expect profits to increase.
The survey found 36% of professionals predict growth in employee numbers over the next year, while 39% say they expect no change and 23% expect a decrease.
The CPA Canada Business Monitor surveys accountants in CFO, CEO and CEO as well as other leadership positions.
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