Canadian executives see little chance of a double-dip recession in this country, while one-third predict the U.S. economy will slump again, according to a survey.
Weak growth in the U.S. was cited as the number one business concern among the 154 executives polled in the Gandalf Group’s quarterly C-Suite survey, with 87% of executives saying they were either very concerned or somewhat concerned. About 79% feared another credit crunch, it found.
In Canada, executives were optimistic about their business prospects over the next 12 months, with just over one-third forecasting strong growth for their companies and 62% seeing moderate growth.
Smaller resource companies were the most optimistic about their prospects, it said.
The survey also indicated Canadian executives are beginning to change their views towards overseas markets. At present, the U.S. remains Canada’s most important trading partner, while over the longer term, the executives see its importance declining and Canada’s geopolitical strength on the rise.
About 96% of Canadian companies saw overseas markets, led by manufacturing and resources businesses, as important to their growth. All of them said the U.S. remains the key market for Canada, followed by China.
Over the longer term, the executives said they see the U.S. economy in decline, with only 38% saying it would be “somewhat stronger” or “much stronger” than it is today. That compares with 72% who see an improvement in Canada.
About 88% of executives said Canada will have more international influence in 10 years than it does now, while only 45% said the same thing about the U.S.
Almost three-quarters of the executives surveyed said Canada needs to shift its export focus away from its trading partner south of the border.
When it comes to foreign ownership of Canadian business, executives indicated that in most cases they would not be opposed. The two key areas where executives said foreign ownership restrictions are needed were in banks and fresh water supplies.
Only one-third would object to foreign ownership of airlines, it found.
The survey, sponsored by KPMG, was carried out between May 26 and June 11.
