Canadian economy expected to grow 1.2% YoY in Q4 2022: CFIB

14 Jan '23

2 min read

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For the last quarter of 2022, the Canadian economy is estimated to grow at a very slow pace, 1.2 per cent year-on-year (YoY), according to the latest Main Street Quarterly report by the Canadian Federation of Independent Business (CFIB). The country’s total consumer price inflation is expected to recede in the first quarter of 2023 and reach 5.7 per cent YoY.

Canada’s consumer price inflation, excluding food and energy, is expected to reach 5 per cent on a year-over-year basis.

The country’s private sector job vacancy rate declined slightly in the fourth quarter of 2022 (4.8 per cent), and 665,500 jobs went unfilled, as per CFIB’s report.

Across Canada, Prince Edward Island, and New Brunswick showed the largest quarterly increases, with 6.1 per cent and 5.6 per cent vacancy rates, respectively, while Quebec, British Columbia, and Saskatchewan saw slight declines.

Canada’s SMEs’ investment plans were below to pre-pandemic levels in the fourth quarter of 2022, with almost half (48 per cent) of businesses investing.

Analysis show that small businesses impacted by labour shortages are more likely to invest, which is one of the ways to cope with lack of staffing, since a significant share of these investments includes office technology, process machinery, or equipment. Also, businesses that are in good shape and are optimistic about their future are about three times as likely to invest than businesses who are currently in poor shape and expect weaker performances for the future.

Fibre2Fashion News Desk (DP)

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