KPMG: Canadian CEOs Grow Cautious on Economy, Despite Optimism for Their Own Firms

Chief executives in Canada are becoming increasingly concerned about the state of the domestic economy, although most remain optimistic about their companies’ prospects over the coming years, according to a recent survey commissioned by KPMG.

Nearly 60 percent of Canadian CEOs identified economic uncertainty as their most significant challenge, a figure slightly higher than the 53 percent of CEOs worldwide who shared similar concerns. The survey also revealed that 83 percent of Canadian executives expressed confidence in the three-year growth outlook for the national economy, a drop of six percentage points compared to the previous year.

KPMG’s annual CEO survey highlights a growing sense of caution among corporate leaders, a sentiment mirrored by weak business investment data. Statistics Canada recently reported that the economy grew at an annualized rate of just one percent in the third quarter, falling short of the Bank of Canada’s earlier predictions.

The Bank of Canada is expected to provide updated economic projections on October 23, alongside its upcoming interest rate decision.

While smaller business leaders appear slightly more optimistic about both the economy and their individual companies compared to executives of larger firms, they are more concerned about the rise of protectionist attitudes, according to KPMG. The advisory firm’s survey included responses from 1,325 CEOs worldwide, representing companies with over US$500 million in revenue, 75 of whom were based in Canada. Additionally, 735 leaders or owners of small- and medium-sized Canadian businesses were polled.

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