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Economic pessimism significantly outpaces optimism among top Canadian business leaders: CPA Canada survey

Canadian business leaders are more than three times as likely to express pessimism about the Canadian economy than optimism.

Toronto, January 23, 2024 – Canadian business leaders are more than three times as likely to express pessimism about the Canadian economy than optimism, according to a recent survey of CPA Canada members holding senior leadership positions.

Half of respondents to the Q4 Business Monitor survey from Chartered Professional Accountants of Canada are pessimistic about prospects for the Canadian economy over the next 12 months, 16 per cent are optimistic and the remaining 34 per cent are neutral. 

A resounding 90 per cent of respondents believe current interest rates are having a negative impact on the Canadian economy, while 71 per cent believe rates are having a negative impact on their own company.

“Our survey results suggest that regardless of whether we are in a technical recession, the perception among top business leaders is of worsening conditions for the Canadian economy,” says Rosemary McGuire, Vice-President, Research, Guidance and Support at CPA Canada.

The CPA Canada quarterly Business Monitor survey takes the pulse of professional accountants in leadership positions in privately and publicly held companies.

Roughly three quarters (73 per cent) of respondents believe that inflation is hurting their own company and 61 per cent  believe that they will continue to feel negative consequences for at least another six months.

“The perception that lingering inflation combined with high interest rates will continue to take a toll both on individual companies and the entire Canadian economy are likely contributing to a negative overall economic outlook,” adds McGuire.

The survey also suggests: 

  • 63 per cent believe their companies will have increased revenue over the next year
  • 54 per cent say profits will increase over the next year
  • 37 per cent anticipate a climb in employee numbers
  • 47 per cent of respondents indicate they have fewer employees that their company needs, while 24 per cent believe they have more than needed
  • Among those who indicate their company has fewer employees than needed, the most often cited reason is a shortage of skilled workers in the labour market (62 per cent).

Methodology 

The CPA Canada Business Monitor is issued quarterly, based on a survey conducted by CPA Canada using the survey platform Alchemer. The report draws upon business insights of professional accountants in leadership positions in privately and publicly held companies. 

For the Q4 2023 study, emailed surveys were completed by 250 of 5,653 people identified by CPA Canada as holding senior positions in industry (CFOs, CEOs, COOs and other leadership roles). Respondents work for a mix of small, medium and large companies, as determined by employee size. The response rate was 6.4 per cent, with a margin of error associated with this type of study ±6.2 per cent, with a confidence level of 95 per cent. The response rate calculation is calculated as follows: Response Rate = Survey Completes / (Completed Surveys + Incomplete Surveys + Estimated Other Eligible Members in Sample). The survey was conducted from November 28 to December 14, 2023. Further information can be found in the survey’s background document. 

About Chartered Professional Accountants of Canada

Chartered Professional Accountants of Canada (CPA Canada) is one of the largest national accounting organizations in the world, representing the Canadian accounting profession at the national and international levels. With over 220,000 members, CPA Canada supports the profession and acts in the public interest by promoting transparency in financial markets, preparing members for a rapidly evolving business environment and contributing to standard setting and public policy. Globally, it works together with international bodies to build a stronger accounting profession worldwide. cpacanada.ca.