Businesses In Canada Worried About The Country’s Economy

In the last 12 months, positive hope coming from the business directors regarding the economy of Canada is starting to waver. This is based on a recent survey because a number of political scandals have emerged in a domestic level. Add the fact that the interest rates are starting to hike up again and there is no certainty as to the talks between the North American Free Trade Agreement which is why the businesses in Canada are not looking so positive. There is also the effect on the currency exchange Montreal which resulted from the wavering of their positivity.

The Institute of Corporate Directors or ICD conducted their yearly survey and it revealed that 33 per cent of the participants expect the economy of the country to get better in between two and five years from now. This number is lower compared to the 52 per cent recorded last year. According to the 2018 survey, the percentage of businesses that expect the economy to get worse reached 34 per cent while only 26 per cent is predicting that it will remain the same.

The findings are the result of the expected slow pace from the economy since it has been spiking from last year’s growth. The GDP of Canada has already increased by 3.1 per cent last year but it has declined by 0.1 per cent at the beginning of this year. During the month of February, there was a gain of 0.4 per cent. On the side note, the wholesale sales have increased by 1.1 per cent and it has reached $62.8 billion during the month of March. Manufacturing sales have increased by 1.4 per cent which is higher than the predictions of the analysts.

These figures were provided by Statistics Canada. The report said that business directors in the country are predicting that the economy might hit a bump in the road despite the positive figures that were published. This will impact the currency exchange Montreal as well as the overall health of the economy. This will further highlight the difference between Canada and US in terms of the outlook of the analysts.