RSM Canada’s Financial Conditions Index highlights the impact to Canada’s economy in the first quarter of 2020, requiring responses by monetary and fiscal authorities
On April 23, accounting firm RSM Canada launched its first 2020 issue of ‘The Real Economy: Canada’ – a quarterly report that provides Canadian businesses with economic analysis and insights into factors driving growth or economic headwinds in Canada’s middle market.
As the COVID-19 pandemic continues to disrupt the global economy, the report investigates how deep the impact will be for Canada’s economy as well as its business community.
Through an analysis of in-depth data, the report also outlines recommendations on how the government and financial authorities can curtail the damage and explores what Canada’s economic recovery could look like in the months ahead.
Key findings in this quarter’s report include:
“Canada’s financial system has experienced a series of devastating blows in the wake of the global equity market collapse that began in the last weeks of February, and which has us on the verge of a financial crisis that could rival the global financial crisis of 2008,” said Joe Brusuelas, chief economist with RSM US LLP, in a prepared statement. “Monetary authorities have responded appropriately with measures such as easing of interest rates, but now we need to see fiscal authorities implement meaningful measures to protect and preserve the real economy.”
“Measures being taken to stem the spread of COVID-19 have ravaged Canada’s economy,” said Alex Kotsopoulos, vice-president, projects and economics with RSM Canada, also in a statement. “As we look ahead to recovery, we expect it will be more tepid than originally thought and, unfortunately, for a variety of reasons it will take longer for us to rebound in Canada than the U.S.”