FleishmanHillard HighRoad for RSM Canada, fhr.rsm@FHhighroad.com, 416.508.8430
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FleishmanHillard HighRoad for RSM Canada, fhr.rsm@FHhighroad.com, 416.508.8430
for media use only
TORONTO, ON - (May 31, 2023) - RSM Canada ("RSM"), a leading global provider of audit, tax and consulting services focused on middle market businesses, today launched its spring 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.
As the Bank of Canada tries to simultaneously tame inflation and guide the economy to a softer landing, the second edition of this year’s The Real Economy Canada examines the impact of elevated interest rates on the country’s economic growth, the declining rates of borrowing and investment in Canada, and the potential for interest rate cuts towards the end of 2023.
The report also shines a light on Canada’s private equity market as the rate of deals slow – especially in the technology sector – and how Canadian businesses are pursuing sustainability and ESG as key areas of investment.
Key findings in this quarter’s report include:
A mild and brief recession is on the horizon for Canada
Despite earlier projections, the Bank of Canada could cut interest rates this year
Tightening financial conditions continue to impact investment and borrowing
“After months of steep interest rate increases, we’re now starting to see the impact of those decisions in Canada’s real economy, with a brief recession on the horizon for later this year,” says Tuan Nguyen, economist for RSM. “But despite this downturn, we still expect a good portion of the Canadian economy to avoid a recession altogether, thanks in large part to the pockets of growth across multiples industries. The deciding factor will be the labour market - depending on how that performs, it could either sink or lift Canada’s economy almost single-handedly.”
Joe Brusuelas, chief economist for RSM, added: “Lending conditions for Canadian businesses and consumers remain restrictive, despite the period of calm we’re seeing in the markets. This reflects the uncertainty among trading partners over a slowing economy and elevated inflation, as well as the geopolitical tensions that continue to have an impact.”
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.