FleishmanHillard HighRoad for RSM Canada, fhr.rsm@FHhighroad.com, 416.508.8430
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TORONTO, ON - (Feb. 22, 2023) - RSM Canada ("RSM"), a leading global provider of audit, tax and consulting services focused on middle market businesses, today launched its first 2023 edition of ‘The Real Economy Canada’ – a quarterly report that provides Canadian businesses with analysis and insights on the country’s complex economic conditions.
With price instability and a tight labour market spilling over into 2023, the first edition of this year’s ‘The Real Economy, Canada’ report examines what inflation will look like in 2023 as Canadian businesses and consumers continue to navigate a volatile economy.
The report also shines a light on how Canada’s middle market businesses are faring in their ongoing battle for employee retention amidst a white-hot labour market and how the downtown cores of Canada’s biggest cities are attempting to fill the void left by businesses that are pivoting to remote work.
Key findings in this quarter’s report include:
Inflation in Canada could potentially be cut in half by the end of 2023.
Canada may avoid an economic recession, though expect economic growth to slow in 2023 and 202
Interest rates are unlikely to decline for the foreseeable future.
A hot labour market is driving a renewed emphasis on employee retention.
“With inflation still elevated and demand surging in Canada, we expect the Bank of Canada to continue raising interest rates to cool an overheating economy,” says Joe Brusuelas, chief economist for RSM. “As a result, we can expect inflation to fall to around three per cent by the end of 2023 and return to the two per cent target by the end of 2024."
Brusuelas continues: “We expect consumer confidence to wane and for retail sales to slow as long as inflation remains elevated. Because the consumer sector is behind much of the economy’s output, we expect that to translate into lower GDP growth for Canada in both 2023 and 2024.”
For more information on RSM Canada's ‘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 57,000 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 Twitter and/or connect with us on LinkedIn.