The CEOs of some of Canada's largest publicly traded companies “are far more confident in Canada's economic growth prospects than they were six months ago,” KPMG's Global CEO Outlook pulse survey found.
CEOs’ level of confidence in the three-year growth prospects for the Canadian economy has risen to 81 per cent. This is up from 48 per cent only six months ago when companies were still adapting to COVID-19 public health and safety lockdown restrictions, coping with workplace challenges and supply chain interruptions, and rapidly deploying digital tools to better connect with their employees and customers, says KPMG.
"We have seen tremendous resiliency and ingenuity in the business community throughout this crisis," said Elio Luongo, President and Senior Partner, KPMG in Canada in a March 23 statement. "While the economy is not yet back where we need it to be, recent reports on job and GDP growth indicate a full rebound may come earlier than expected. This would especially be good news for the small- and medium-sized enterprise business owners who have been hit the hardest."
With respect to corporate earnings, 86 per cent of Canadian CEOs remain confident in the three-year growth prospects, predicting per annum earnings growth of 2.5 per cent. This is a slight increase from 84 per cent six months ago.
Lasting changes expected
Forty-three per cent CEOs in Canada said the pandemic has "forever changed" their business. This compares to 22 per cent globally. “Many are reconsidering their organization's physical footprint, nearly half embracing flexible workplace options, and nearly two-thirds continuing to build on their use of digital collaboration and communication tools,” says KPMG.
