Latest quarterly survey from CPA Canada reveals challenges to economic growth in 2022
A new study published by Chartered Professional Accountants of Canada (CPA Canada) shows a surge in supply chain concerns coupled with a resurgent pandemic as the top challenges to the growth of the Canadian economy.
According to the latest CPA Canada Business Monitor, only 43% of respondents surveyed in the 4th quarter in 2021 have an optimistic outlook for Canada's economic projections in the coming year, a significant drop from the 52% in the previous quarter.
Meanwhile, 19% of the respondents in the fourth quarter expressed total pessimism, essentially unchanged from the 19% who said the same in the prior period. Thirty-eight per cent remained cautiously neutral in Q4, an increase from 28% the quarter before.
CPA Canada also revealed that the number of respondents who are extremely or very concerned about the potential impact of the pandemic on the economy in 2022 has soared from 21% in the third quarter of 2021 to 37% in the final quarter.
"For almost two years now, the pandemic and its economic fallout have put Canadians and our economy on an unprecedented and challenging course," Charles-Antoine St-Jean, president and CEO of CPA Canada said.
Survey respondents identified the top five challenges facing the Canadian economy in Q4 as supply chain issues (20%), adverse effects of COVID-19 (18%), and rising inflation (15%), employee recruitment, retention, and training (15%) and shortage of skilled workers (8%).
Accordingly, respondents want the federal government to increase immigration rates for people in in-demand jobs (49%) and provide better support training to workers (47%) to help Canadian companies attract skilled workers. Increased compensation (67%), support for hybrid work arrangements (50%), and improved opportunities for work-life balance (46%) are ways respondents suggested to address recruitment and retention.
Poll participants also believe that the environment deserves more attention. Among them, 63% agree that the federal government should focus on controlling climate change. Business leaders are also concerned about Canada’s federal fiscal position, with 59% of respondents being extremely or very concerned, a slight drop from 63% in the third quarter.
Concerns about the economy as a whole are growing. Still, optimism about businesses is high at 69%, almost the same as in the previous quarter (70%). Over the next 12 months, 78% of respondents believe their organization's revenue will increase, an increase from 74% in the third quarter. Almost three fifths (57%) expect an increase in headcount (up from 52% in the third quarter). With regards toprofits, 64% of those surveyed expect a steady increase compared to the third quarter (62%).
"Business ingenuity and major contributions from governments have helped us weather the storm but, with the spread of Omicron, the private and public sectors must continue to work together to manage the evolving situation," St-Jean said.
