And 78% of Canadian executives intend to pursue deals in the next 12 months for growth and to streamline businesses: EY report

Mario ToneguzziThings may still be uncertain in the Canadian economy these days but there’s some good news when it comes to investment.

The 18th biannual EY report, Capital Confidence Barometer, which was released on Wednesday, indicates that the country is the third top investment destination in the world.

“Canada is breaking records this year,” says Doug Jenkinson, a partner in EY Canada’s Transaction Advisory Services practice. “The world is taking notice of recent positive economic developments and turning to Canada as the third top investment destination – the highest ranking we’ve seen since the survey began in 2009. It’s not just global sentiment that’s reaching a new high. The number of Canadian executives intending to pursue acquisitions continues to climb.”

The survey also found that 78 per cent of Canadian executives intend to actively pursue deals in the next 12 months as a key avenue for growth and a way to streamline businesses.

The report also showed that 86 per cent of Canadian executives see the local economy improving and 87 per cent see the global economy improving.

“Despite this overall optimism, potential changes to NAFTA looms on the minds of Canadian executives. Almost half (49 per cent) list uncertainty around trade policy and protectionism as the greatest threat to the growth of their business,” said the report.

“Uncertainty south of the border does not seem to be impacting earnings expectations. Sixty-six per cent of Canadian respondents have stable confidence in corporate earnings – compared to only 33 per cent just six months ago.”

Respected business writer Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald in various capacities, including 12 years as a senior business writer.


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