'They are aggressively looking for ways to improve their company's productivity, optimize revenue'
There is high optimism among Canadian business leaders when it comes to their company’s outlook and the prospective growth of the Canadian economy as a whole, according to a recent report.
CEOs of Canada's largest and most-influential companies remain confident in their organization's three-year growth prospects (76 per cent) and the Canadian economy (83 per cent).
"It's not surprising that CEOs are confident after piloting through one of the most-turbulent periods in recent business history, but they acknowledge they're now feeling the growing pressure of leading their organizations," says Benjie Thomas, CEO and senior partner at KPMG in Canada.
"Now they are aggressively looking for ways to improve their company's productivity, optimize revenue, take advantage of new technologies like generative AI, and become cyber-proof, trade-proof and inflation-proof."
Source: KPMG
By comparison, their outlook on the global economy is less enthusiastic, with only 69 per cent optimistic — an increase, in fact, of three points from 2022 but unchanged from last year.
Similarly, 88 per cent of Canadian SMBs are confident about the country’s economic growth prospects over the next three years. Eighty-four per cent feel optimistic about global economic growth despite geopolitical tensions, trade fragmentation and tariff concerns. As many as 85 per cent think the U.S. economy, productivity and investment will continue to outpace Canada’s, prompting them to espouse a more integrated North American economy as the best way forward, says KPMG.
By comparison, only 78 per cent of the global CEOs surveyed are confident about the growth prospects for their own country, down seven points from 2022 and unchanged from last year. Seventy-two per cent of global CEOs have a positive outlook for the global economy, largely unchanged over the last two years.
Source: KPMG
Despite a short-term dip, business sentiment for Canada is at its highest level in almost three years, according to the Canadian Chamber of Commerce.
What are Canadian CEOs worried about?
But not everything is bright and shiny going forward, according to KPMG’s survey of 1,325 CEOs between July 25 and Aug. 29, 2024.
Beyond economic uncertainty (59 per cent), the growth prospects or challenges of their organization (44 per cent) is the issue most top-of-mind for CEOs in corporate Canada today. Geopolitical complexities (41 per cent), the race to embrace and embed generative AI (40 per cent) and the competition for talent (30 per cent) round out the top five.
“Trade and tariffs hold the greatest concern for SMB leaders. They cite growing protectionist attitudes like economic decoupling and trade relationships (31 per cent) as their top-of-mind issue,” according to KPMG’s 2024 Canadian CEO Outlook.
Economic uncertainty (26 per cent), embedding generative AI (26 per cent), managing costs and cash flow (24 per cent), and managing cybersecurity risks (24 per cent) are the other current issues “keeping them vigilant”.
Source: KPMG
A previous report by Zoho Corporation revealed a decline in business optimism among Canadian business leaders due to economic challenges.
