BDC – Monthly Economic Letter
The global economy is showing the effects of more than a year of intense trade conflict and many economists are predicting more trouble ahead.
Already, economic growth has slowed in Canada as it has in the United States, Europe, China and India. Forecasters have shifted their global growth outlook downward over the past few months as uncertainty weighs on global trade and investment.
The International Monetary Fund revised its estimate for global growth to 3.0% for this year—the slowest pace since 2009, and a downward revision to U.S. growth was a significant factor. The U.S. economy is likely to grow 2.4%, down from 2.6% in July.
Canada’s economy is expected to grow by just 1.5% this year and 1.7% next year.
During the first half of 2019, growth in consumer spending slowed to 1.6% and business investment contracted by 3.6%. Although, export growth of 2.5% carried the economy during the period, that momentum is unlikely to be sustained as foreign demand for Canada’s exports is expected to decelerate.
In this slowing economy, what should you do as an entrepreneur to increase the odds your business will not only survive the downturn but thrive?