FleishmanHillard HighRoad for RSM Canada, fhr.rsm@FHhighroad.com, 416.508.8430
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RSM Canada ("RSM"), the leading global provider of audit, tax and consulting services focused on middle market businesses, today launched its second 2020 issue of "The Real Economy: Canada” – a quarterly report that provides Canadian businesses with economic analysis and insights into factors driving growth, or economic headwinds, in Canada's middle market.
As Canada moves past the initial shutdown phase of the COVID-19 pandemic and provinces start to reopen, the Real Economy: Canada report shines a light on the economic impact of the pandemic so far, what the outlook is for the near future, and explores some of the measures government and other authorities can take as the country looks towards its recovery.
Key findings in this quarter’s report include:
1. After a big drop in April, Canada’s economy is slowly on the up, according to high-frequency data from re-opening provinces.
2. Despite promising economic indications, Canada’s industrial sector is at the same level of distress as in the Great Depression.
3. To continue economic recovery, and to pay down national debt following the pandemic, the government and authorities need to boost investment today.
4. Certain provinces, industries and age groups are at risk of being left behind in Canada’s shift to remote work.
“The pandemic has certainly dealt a tough blow to Canada’s industrial sector – an area already struggling back in 2019 as a result of the ongoing trade war between the U.S. and China,” said Joe Brusuelas, chief economist with RSM US LLP. “Despite some promising short-term economic indicators, and the Bank of Canada’s steps to accommodate stimulus measures, it’s imperative that the authorities make prudent investments to keep industrial recovery moving in the right direction and look to boost trade efforts as much as possible.”
“Following the slow re-opening of provinces, short-term data shows that the Canadian economy is performing at a better rate than previously predicted,” adds Alex Kotsopoulos, partner, projects and economics with RSM Canada. “However, it’s likely that provinces with a greater proportion of their economy dedicated to areas such as natural resources will lag behind others, and additional investment or focus may be needed to support these areas.”
“As we look to the future, the financial measures taken to address this pandemic will increase Canada’s national debt, and the country will essentially need to grow its way out of that debt” continues Kotsopoulos. “By making important investments today in areas such as infrastructure and goods movement, the federal government can get ahead early and begin to set the groundwork for that growth.”
About RSM Canada
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RSM Canada LLP provides public accounting services and is the Canadian member firm of RSM International, a global network of independent audit, tax and consulting firms with 57,000 people in 120 countries. RSM Alberta LLP is a limited liability partnership and independent legal entity that provides public accounting services. RSM Canada Consulting LP provides consulting services and is an affiliate of RSM US LLP, a member firm of RSM International. For more information visit rsmcanada.com, like us on Facebook, follow us on Twitter and/or connect with us on LinkedIn.