Latest news with #CanadaEconomy
Yahoo
12 hours ago
- Business
- Yahoo
Promising policy action brings hope amidst continued economic challenges: PwC's 2025 M&A mid-year update released
Transformative policy actions could boost Canada's role in North American supply chains and stabilize ties with the US. Trend shows decline in inbound and locally sourced deals; overall deals activity comes in at approximately 1000 deals totalling $134B announced since January 2025. Canadian family offices rebound: deal values increased by 16% from 2023 to 2024, signaling renewed momentum. TORONTO, June 18, 2025 /CNW/ - PwC Canada's 2025 mid-year Canadian M&A update highlights a pivotal moment for the Canadian economy. Amidst global uncertainty and a cooling domestic outlook, Canada is pursuing a bold policy agenda aimed at restoring national economic resilience. While these efforts are rooted in domestic priorities, they may also yield a valuable secondary benefit: a more stable and strategically aligned relationship with the United States. "Canada's current policy direction focuses on building a stronger, more self-reliant economy," said Michael Dobner, National Leader of Economics and Policy Practice, PwC Canada. "This approach also helps foster a more constructive and complementary relationship with the US, one based on shared interests rather than dependency." Economic update: Between January and May 2025, Canadian companies announced 996 deals totaling $134 billion. However, the report notes declines in inbound and locally sourced deals in Canada. This reflects a broader climate of caution, as businesses delay investments and expansion plans in response to persistent uncertainty. PwC's baseline projection for Canadian GDP growth in 2025 remains below 1%. Despite these headwinds, Canada's trade position with the United States remains comparatively strong. Canadian exporters are generally benefiting from relatively low tariffs, especially when compared to countries like China, which continue to face significant trade barriers to the United States. This advantage can help some Canadian businesses to maintain or even grow their market share in the US, offering a rare bright spot in an otherwise subdued economic landscape. In this context, "the current negotiations between Canada and the United States, which benefit from Canada's new vision, may further strengthen Canada's relative trade position with the United States," added Dobner. The report outlines a suite of policy priorities shaping Canada's new vision. Key priorities now include streamlining regulations, initiating large-scale infrastructure projects, increasing investment in defence and Arctic development, removing interprovincial trade barriers, fast-tracking the integration of artificial intelligence and changing the immigration system to focus on attracting highly skilled individuals to Canada. These initiatives are designed to address Canada's productivity and competitiveness challenges, and, if successful, will also position the country to play a more active role in North American supply chains and innovation ecosystems. If early policy actions are interpreted by market players as genuine, practical and decisive, PwC Canada suggests that meaningful improvements in Canada's economic outlook could begin as early as 2026. All levels of government have a crucial role in providing these signals over the coming months. While there is good reason for cautious optimism, the report notes that the global environment remains unpredictable. Potential global crises, financial crisis as a result of a loss of trust in the US dollar, or disruption of entire sectors by emerging technology could have significant consequences. Canadian businesses must stay vigilant, closely monitor global developments and adopt flexible, risk-aware strategies to navigate an uncertain future. Opportunities for Canadian family offices: The report also highlights the evolving role of Canadian family offices, which are emerging as increasingly influential players in the investment landscape. After a period of decline beginning in 2021, family office deal activity is rebounding. In Canada, deal values rose by more than 16% from 2023 to 2024. Key trends shaping this evolution: Club deals, where family offices co-invest with peers to access larger opportunities and share risk, are gaining traction globally. While only 23% of Canadian family office investments in 2024 were structured this way, compared to 71% globally in 2022, this gap signals untapped potential. Impact investing is on the rise. In 2024, Canadian family offices surpassed the 50% threshold for allocating capital to investments that generate measurable social or environmental impact alongside financial returns. These investments are increasingly aligned with national priorities such as productivity, innovation, and affordable housing. Direct investments, where family offices invest directly in businesses such as private equity, startups or M&A, have grown to represent 70% of global activity, up from a real estate-heavy focus a decade ago. In contrast, 69% of Canadian family office investments in 2024 remained in real estate, indicating potential opportunities to diversify investment portfolios. For more insights and to access the full report, visit About PwC Canada: At PwC Canada, we help clients build trust and reinvent so they can turn complexity into competitive advantage. We're a tech-forward, people-empowered network with more than 7,000 partners and staff in offices across the country. Across audit and assurance, tax and legal, deals and consulting, we help build, accelerate and sustain momentum. PwC refers to the Canadian member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see for further details. Find out more by visiting us at: © 2025 PricewaterhouseCoopers LLP, an Ontario limited liability partnership. All rights reserved. SOURCE PwC Management Services LP View original content to download multimedia:
CBC
21 hours ago
- Business
- CBC
Carney holds news conference in Ottawa
Prime Minister Mark Carney holds a news conference on Parliament Hill, accompanied by Finance Minister François-Philippe Champagne, Industry Minister Melanie Joly, and Canada-U.S. Trade Minister Dominic LeBlanc.
Globe and Mail
3 days ago
- Business
- Globe and Mail
Canada's household debt crisis: When and how we outpaced Britain and the U.S.
Canada's household debt-to-GDP ratio has remained at or above 100 per cent for a decade – currently the highest among the world's 10 largest economies. As of late 2024, Britain ranked second at 77 per cent, followed by the United States at 71 per cent. Here's a look at when and why Canada's household debt began to outpace that of its global peers. Debt in an economy typically falls into three categories: government, corporate and household. While Canada's government debt is significant, it remains lower as a percentage of GDP than in several other major economies. What sets Canada apart is the scale of its household debt, which increases the country's exposure to interest rate hikes and economic downturns. Of the roughly $3-trillion in Canadian household debt in the first quarter, nearly 75 per cent is tied to mortgages – underscoring the central role of housing unaffordability in the country's financial vulnerability. Between 2000 and 2010, Canada's household debt-to-GDP ratio was lower than those of both Britain and the U.S. But since 2011, it has surpassed both, and the gap has continued to widen. This shift mirrors the pattern discussed in my earlier Globe and Mail article, 'When exactly did Canadian housing become so unaffordable — and who's to blame?' A key divergence emerged in 2009, when the ratio of average home price to disposable income exceeded nine. Since 2015, that figure has remained above 10 — significantly higher than in Britain or the U.S. While correlation doesn't necessarily imply causation, the numbers clearly point to housing unaffordability as a major driver of household debt in Canada. Rising home prices have forced new buyers to take on larger mortgages, but the impact goes beyond that. Homeowners who saw gains in home equity were often refinanced or took out home equity lines of credit — further inflating debt levels. One major reason for Canada's divergence in housing affordability appears to be monetary policy after 2008. Like the U.S. Federal Reserve, the Bank of Canada cut interest rates to near zero. But unlike the U.S., Canada hadn't experienced a severe housing crash. As a result, prolonged ultralow rates spurred speculative demand, with buyers using cheap leverage to chase high returns on small down payments. While prolonged low rates may have initiated the divergence from Britain and the U.S., other factors such as restrictive zoning and rapid population growth helped sustain the housing unaffordability. Canada's household debt crisis is inseparable from its housing affordability problem — driven by prolonged low interest rates, limited supply owing to restrictive zoning, population growth and speculative investment. Housing unaffordability not only hurts the quality of life for younger generations, but also makes the Canadian economy more vulnerable to future economic shocks because of its tight link with household debt levels. Hanif Bayat, PhD, is the CEO and founder of a Canadian personal finance platform.
CTV News
08-06-2025
- Business
- CTV News
CTV QP: Boosting Canada's economy with domestic trade
Watch Internal Trade Minister Chrystia Freeland speaks about the significance of domestic trade and the impact it will have on Canada's economy.
CTV News
05-06-2025
- Business
- CTV News
Doug Ford to host premiers in Muskoka this summer
Premier of Saskatchewan Scott Moe, left, and Premier of Ontario Doug Ford during a media event to sign a Memorandum of Understanding in Saskatoon on Sunday, June 1, 2025. THE CANADIAN PRESS/Liam Richards Ontario Premier Doug Ford has invited his provincial counterparts to join him for a meeting in Muskoka this summer as they look to bolster Canada's economy amid an ongoing trade war. The Council of the Federation meeting is set to take place in Huntsville from July 21 to 23. In a news release Thursday, Ford said that he has formally asked the other premiers to join him for the meeting to follow up a recent First Ministers' meeting with Prime Minister Mark Carney in Saskatchewan which appeared to garner glowing praise from all those involved. 'Together, premiers are seizing the momentum coming out of the recent First Ministers' Meeting in Saskatoon to move the projects that will unleash the full potential of Canada's economy forward,' Ford said in a statement. 'There's never been a more important time for all of us from coast to coast to coast to work together to build the most competitive economy in the G7.' The agenda is expected to include nation-building projects, how to continue to navigate Canada-U.S. relations amid the ongoing Trump tariffs and public safety. 'While in Muskoka, premiers will also meet with leaders of National Indigenous Organizations to have focused discussions on economic development, economic reconciliation and other key priorities for Indigenous peoples and communities,' Ford's office said. The Ford government moved forward this week with Bill 5, controversial legislation that would establish 'special economic zones' where some environmental and other regulations can be circumvented in order to speed up projects, particularly around critical mineral extraction in the Ring of Fire. Critics have said the legislation opens the door to ride roughshod on First Nations rights and environmental laws. However Ford has maintained that the legislation is necessary because the province cannot afford to wait years for project approvals to go ahead.
