FleishmanHillard HighRoad for RSM Canada, fhr.rsm@FHhighroad.com, 416.508.8430
for media use only
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FleishmanHillard HighRoad for RSM Canada, fhr.rsm@FHhighroad.com, 416.508.8430
for media use only
TORONTO, ON - (September 14, 2023) - RSM Canada ("RSM"), a leading global provider of assurance, tax and consulting services, today launched its latest edition of The Real Economy Canada – a quarterly report that provides Canadian businesses with analysis and insights on the country's complex economic conditions. The “real economy” is the segment of the economy that produces the goods and provides the services we rely on every day.
With the Bank of Canada recently holding its September interest rate, RSM Canada’s latest report examines how the country’s economy is steadily cooling after months of higher inflation, however initial predictions of a recession this year are now unlikely and more feasible in the second half of 2024. With these conditions in mind, the earliest opportunity for interest rate cuts will be the second quarter of 2024.
The report also explores a key measure that Canada can explore to drive more productivity and growth - capitalizing on its recent policy to increase immigration by tapping into the underutilized skilled labour coming into Canada.
There are also special sections on the opportunities for Canadian businesses as Canada looks to support the shift to Electric Vehicles (EVs), and how an oversaturated streaming market is driving competition among market leaders to retain subscribers.
Key findings in this quarter’s report include:
Prospects of a 2023 recession have been pushed until 2024:
Bank of Canada’s first rate cut will not come before the second quarter of 2024:
The Canadian economy has displayed remarkable resilience this year, defying expectations of a downturn. While we may muddle through the rest of the year with slower growth, Canada will likely avoid a recession this year. In addition, a 40% probability of a soft landing is promising thanks to our strong labour demand, healthy consumer spending and a housing market that is still robust. All these factors are in part fueled by Canada’s ambitious immigration policy and healthy household savings from the pandemic.
For more information on The Real Economy Canada, or to download the report, please visit their webpage.
About RSM Canada
RSM is the leading provider of professional services to the middle market. The clients we serve are the engine of global commerce and economic growth, and we are focused on developing leading professionals and services to meet their evolving needs in today’s ever-changing business landscape. Our purpose is to instill confidence in a world of change, empowering our clients and people to realize their full potential.
RSM Canada LLP provides public accounting services and is the Canadian member firm of RSM International, a global network of independent assurance, tax and consulting firms with 64,000 people in 120 countries. 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 X and/or connect with us on LinkedIn.