Our 19th edition of the Global Capital Confidence Barometer finds that Canadian executives are taking a breather from record levels of deal making in recent years. Canadian executives are very bullish on the global and local economies, so we don’t believe this will be a long-term regression, but rather a pause to take the time to digest recent acquisitions and assess the changing global geopolitical landscape.
Overall, the survey results are very positive and speak to continued corporate optimism and sustained growth.
- On the domestic front, 81% of Canadian respondents see the local economy improving, compared with only 60% 12 months ago.
- On the global front, 96% of Canadian respondents see the global economy improving, compared with 78% 12 months ago.
This further strengthening in the economic outlook has Canadian respondents confident that we will see improvements across the board in corporate earnings, credit availability and the stock market over the next 12 months.
The world continues to take notice of the Canadian economy. Global respondents, for the second consecutive time, see Canada as one of the world’s top investment destinations, ranking it the number-three investment destination globally. This high ranking, the highest Canada has ever achieved, signals strong continued momentum for the Canadian economy on the whole.
In addition, we’re in the midst of a very strong M&A market, which Canadian respondents see continuing at an elevated level.
- The vast majority (95%) of Canadian executives see the global M&A market improving, compared to 44% 12 months ago.
- What’s more, 81% of Canadian respondents see the domestic M&A market improving, compared to 51% a year ago.
However, despite this optimism, only 46% of Canadian executives intend to actively pursue M&A in the next 12 months – a drop from the record-setting mark of 80% in our last survey.