Canada - English

The Economy: What does the future hold? 


This quarter’s c-suite survey [PDF 360KB] shows a significantly weakened outlook for the Canadian economy, where 39% of executives expect the Canadian economy to decline over the next 12 months. In a reversal of recent years, the outlook for Ontario is better than the outlook for the West. Most executives in the West expect their province’s economy to decline, with 24% expecting a steep decline while most in Ontario think the economy will grow.

The most cited concern among businesses are low oil or commodities prices with many focused on the challenge of access to finance and raising equity/funding. In contrast, most of the executives believe a lower value for the Canadian dollar is good news for the economy. About half would welcome a dollar priced at less than 90 cents US in 2015 as far as their company is concerned.

Watch KPMG's Willy Kruh discuss executives' views on the economy.


Top highlights

The impact of falling oil prices

  • The outlook for the economy has weakened significantly. This is the weakest forecast for the Canadian economy among the c-suite since 2009
  • The most common concern among businesses are low oil or commodity prices. Many in the c-suite are focused on the challenge of access to finance, raising equity or funding.


A lower Canadian dollar

  • Most of the c-suite think a lower value for the Canadian dollar in 2015 would be good for the economy. 76% said it would have a very positive or somewhat positive impact
  • Most said the ideal valuation for the dollar as far as their companies were concerned would be less than 90 cents.


Key findings on fiscal and monetary policy

  • 51% of the executives would favour an additional rate cut by the Bank of Canada this Spring. 44% oppose another cut in the central bank's prime lending rate
  • The c-suite thinks balancing the federal budget should be a top priority - most saying it should be a high priority.


Willy J. Kruh

Willy J. Kruh

Global Chairman, Consumer Markets


Robert D. Brouwer

Robert D. Brouwer

Canadian Managing Partner, Clients and Markets


Be first to know

Get the latest information from KPMG.