The results for the Winter 2020-21 Bank of Canada Business Outlook Survey have been released. Firms pointed to a continued recovery supported by strengthening domestic and foreign demand, specifically in goods-producing sectors. Still, firms expect the recovery to be uneven, especially businesses that have been hit hard by the pandemic anticipate challenging times ahead.
Although about half of firms reported that their current sales are below pre-pandemic levels, most expect sales to increase in the next 12 months as the economy recovers. In light of strengthening demand, most firms reported stronger investment and hiring plans. Overall, consumer price inflation is expected to remain somewhat below 2 percent over the next two years.
To read more on the Bank of Canada announcement: https://www.bankofcanada.ca/2021/01/business-outlook-survey-winter-2020-21/
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