The McLeod River Post

COVID-19 dampens business leaders’ optimism: CPA Canada Business Monitor (Q4 2021)

-

Supply chain concerns paired with a resurgent pandemic are the top two challenges to the growth of the Canadian economy cited by business leaders, according to a new survey conducted for Chartered Profession­al Accountant­s of Canada (CPA Canada).

The latest CPA Canada Business Monitor (Q4 2021) finds only 43 per cent of respondent­s surveyed in the fourth quarter were optimistic about Canada’s economic prospects over the next 12 months, down significan­tly from 52 per cent the previous quarter. The number of survey participan­ts expressing outright pessimism remains basically unchanged (19 per cent in Q4 versus 20 per cent in Q3) but the number who remained cautiously neutral has grown to 38 per cent from 28 per cent.

The number of respondent­s either extremely or very concerned about the effect COVID-19 might have on the economy in the coming year jumped to 37 per cent in the last quarter of 2021 from 21 per cent in Q3.

“For almost two years now, the pandemic and its economic fallout have put Canadians and our economy on an unpreceden­ted and challengin­g course,” explains CharlesAnt­oine St-Jean, president and CEO, CPA Canada. “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.”

The top five challenges to Canadian economy identified by respondent­s in Q4 were supply chain issues (20 per cent), negative effects of COVID-19 (18 per cent), the rise in inflation (15 per cent) and employee recruitmen­t, retention and developmen­t (15 per cent) and a lack of skilled workers (eight per cent).

To help Canadian businesses attract skilled workers, survey participan­ts want the federal government to increase immigratio­n levels for people in job categories that are in demand (49 per cent) and offer better support training for workers (47 per cent).

To address recruitmen­t and retention, respondent­s reported that their respective companies are increasing compensati­on (67 per cent), supporting hybrid work arrangemen­ts (50 per cent) and improving work-life balance options (46 per cent).

Climate Change and ederal overnment inances

Survey participan­ts also believe the environmen­t requires attention with 63 per cent agreeing that the federal government should focus on mitigating climate change.

Business leaders also continue to be worried about the federal government’s fiscal position, with 59 per cent of the respondent­s either extremely or very concerned, down marginally from 63 per cent in Q3. Thirty-seven per cent feel the most important factor to ensure responsibl­e fiscal management of Canada’s finances is to set hard limits on government spending and indebtedne­ss. Other solutions cited were improving oversight of government finances (25 per cent) and conducting an independen­t review of government spending (24 per cent).

Company-specific findings

While concerns about the overall economy have risen, optimism about their own businesses remains high at 69 per cent, which is essentiall­y unchanged from the previous quarter (70 per cent). Expectatio­ns for growth over the next 12 months saw 78 per cent of respondent­s believing revenues will increase at their respective organizati­on (74 per cent in Q3), while 57 per cent forecast an increase in the number of employees (52 per cent in Q3). In terms of profits, 64 per cent of those surveyed are expecting a rise, which is stable compared to Q3 (62 per cent).

0ethodolog­y

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

For the Q4 2021 study, emailed surveys were completed by 525 of 5,994 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 15.9 per cent, with a margin of error associated with this type of study “4 per cent, with a confidence level of 95 per cent. The survey was conducted from December 12, 2021 to January 3, 2022. Further informatio­n can be found in the survey’s background document, which is available online at cpacanada.ca/businessmo­nitorQ4202­1.

 ?? ??

Newspapers in English

Newspapers from Canada