RSM Canada a leading global provider of audit, tax and consulting services focused on middle market businesses, today launched its second 2022 edition of ‘The Real Economy, Canada‘ – a quarterly report that provides Canadian businesses with economic analysis and insights into how the nation’s middle market can navigate through complex economic and geopolitical conditions.
With Canada playing a delicate economic balancing act between short-term growth and long-term stability, the second edition of this year’s ‘The Real Economy: Canada‘ report examines the uncertain financial terrain ahead for Canadian businesses despite the competitive advantages held by the energy and commodities sectors, and to what extent inflation will be an economic factor for the rest of 2022.
The report also shines a light on how Canada stands to gain economically from swelling global agriculture commodity demand resulting from geopolitical tensions, the greater role federal and provincial governments will need to play in the clean energy transition, and how Canadian companies are attempting to integrate ESG principles into their operations and financial reporting.
Key findings in this quarter’s report include:
Canada’s middle market is bracing for tighter economic conditions
Canada is in a position to satisfy swelling global agricultural commodity demand as a result of Russia’s invasion of Ukraine
Transition to clean energy and away from ballooning fuel costs will require greater government action
Canadian companies appear committed to sustainability, yet are unsure of how best to put ESG into practice
“Amid geopolitical tensions and surging inflation, the Canadian economy is well positioned to grow this year given its competitive advantages in the commodities and energy sectors,” says Tu Nguyen, economist and ESG director with RSM Canada. “For this reason, a rate hike is a given in the Bank of Canada’s next announcement in June, and a 50 basis-point increase would not be out of the question.”
Nguyen continues: “Russia’s invasion of Ukraine has destabilized global food markets by disrupting production and trade flows, putting Canada – as well as the United States – in a position to replace some of the agricultural products currently in short supply. North American businesses that produce agricultural commodities will need to look ahead and prepare accordingly, whether by increasing production or securing future contracts, as global food supplies are disrupted into next year.”
For more information on RSM Canada’s ‘The Real Economy: Canada’, or to download the report, please visit their webpage.
About RSM Canada
RSM’s purpose is to deliver the power of being understood to our clients, colleagues and communities through world-class audit, tax and consulting services focused on middle market businesses. The clients we serve are the engine of global commerce and economic growth, and we are focused on developing leading professionals and services to meet their evolving needs in today’s ever-changing business environment.
RSM Canada LLP provides public accounting services and is the Canadian member firm of RSM International, a global network of independent audit, tax and consulting firms with 51,000 people across 123 countries. RSM Alberta LLP is a limited liability partnership and independent legal entity that provides public accounting services. RSM Canada Consulting LP provides consulting services and is an affiliate of RSM US LLP, a member firm of RSM International.
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