Growing Concerns Among Canada's CEOs Despite Entrepreneurial Optimism

A survey conducted by KPMG shows that Canadian CEOs are increasingly concerned about the domestic economy. At the same time, they remain largely optimistic regarding the growth prospects of their own companies in the coming years. Almost 60 percent of Canadian CEOs indicated that economic uncertainty is their current biggest challenge, compared to 53 percent of CEOs worldwide. Confidence among executives in the three-year growth outlook for the Canadian economy has fallen to 83 percent, a decline of six percentage points from the previous year. The annual KPMG CEO survey highlights the diminishing confidence among business leaders, which is also reflected in weak investment data. Statistics from Statistics Canada show that the economy grew at an annualized rate of 1 percent in the third quarter, significantly below the Bank of Canada’s forecast. The central bank will release updated economic projections on October 23, the date of its next interest rate decision. Executives of smaller companies seem slightly more optimistic than the heads of larger companies, both in terms of economic growth and their own firms. However, they voiced greater concern about 'growing protectionist attitudes,' according to the consulting firm KPMG. For the survey, KPMG interviewed 1,325 CEOs worldwide from companies with revenues of more than $500 million, including 75 in Canada. Additionally, 735 executives or owners of small and medium-sized Canadian companies were surveyed.