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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 April 2021 edition 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.
In anticipation of Monday’s federal budget announcement, the second edition of this year’s ‘The Real Economy: Canada’ report examines how the economy has responded to aggressive federal spending and monetary policy, and to indirect measures such as the Biden administration’s American Rescue Plan, which is proving to be a spark for growth north of the border. The report also shines a light on the harmonizing effect of Canadian Pacific Railway’s recent $25 billion acquisition, the technological progression of Canadian industries over the past year and the path forward for a struggling Canadian labour force.
“Canadian Pacific’s $25 billion deal to purchase Kansas City Southern marks a significant move toward easing tensions among North American trading partners this year and fulfilling the vision of an integrated North American economy,” says Alex Kotsopoulos, partner, projects and economics with RSM Canada. “In the near-term however, current levels of unemployment in Canada point to a labour market that is struggling to reclaim its full potential, while the current revenue shortage of municipalities and Canada’s output gap – defined as the difference between actual GDP and the economy’s pre-pandemic projected GDP – suggest more action is required by the government.”
Joe Brusuelas, chief economist with RSM US LLP, added: “Buoyed by government spending and aggressive monetary policy, the Canadian economy has recovered nearly 90 per cent of the economic output lost as a result of the pandemic, setting the stage for what is expected to be Canada’s fastest rate of growth in a generation. While the federal government’s upcoming budget will attempt to accelerate recovery, it is the American Rescue Plan that, when combined with Canadian relief efforts, will lift the economy out of its slumber. Payments being sent directly to Americans will unleash c
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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.