Expectations for Canada’s Business Outlook in 2022

It’s finally here—the year 2022, and the month of January is the perfect time for you to contemplate what the new year will bring in terms of your plans, your goals, and how they might integrate with the current business outlook for Canada. In order to supply you with the best information, we’ve done a bit of research on the economic forecast from a couple of key banking and financial sources.

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As we continue our recovery amidst the backdrop of the pandemic, now on the Omicron variant, there are still plenty of reasons to be optimistic about an entrepreneurial future. Below, in no particular order, are some of the best insights on where the Canadian economy seems to be heading this year.

Canadian Bank Executives Weigh In…

The recent RBC Capital Markets Canadian Bank CEO Conference produced opinions from some of the country’s leading financial institutions, including host CEO Dave McKay. Most attendees appeared to take a conservative, if not cautious, approach. McKay believes Q1 may be sluggish but sees positive growth by Q2. Victor Dodig, CEO of the Canadian Imperial Bank of Commerce, was among the most optimistic, but believes the pandemic is still a concern. Speaking to the Financial Post, he stated, “This is something that we’ll get through in spite of the very challenging circumstances that exist in the healthcare system today. In the early going, you won’t see as much activity in the consumer side, but as the economy opens up, you can start to see that normalize.”

Pierre Cleroux, vice president of research and chief economist at Business Development Bank of Canada (BDC,was published in a recent company blog, “Economic Outlook: A Return to Normal in 2022?”. In it, he states 2022 will remain a transitory year but pegs overall economic growth at 3.5%. The consumer demand originating from Canadian households will be the key to recovery in 2022. He closes the article by stating, “The Canadian economic outlook for 2022 is nevertheless encouraging. We should return to pre-pandemic GDP levels in the first few months of the new year, although several factors that contributed to the slowdown in the second half of 2021 will weigh more heavily on the recovery. It is clear that the evolution of the pandemic remains the biggest uncertainty for these forecasts.”

Good News for the Franchise Industry

What can Canadians expect the franchising industry to look like in 2022? Well, according to the prognostications from Edwards Global Services (EGS) who conducted a country-by-country outlook, Canada is one of four countries expected to have a high level of franchise development in 2022, along with Australia, Israel, and the UK.

Annual CFA Convention Coming Up…

Make plans now to attend the Canadian Franchising Association’s National Convention, which takes place April 9-11, 2022, at the Westin Ottawa, Ontario. Yes, registration is already open, and this is the biggest franchise networking expo and event of the year.

We appreciate you reading FranNet of Canada’s bi-monthly blogs. We hope you find our content to be both engaging and informative. If you’re encouraged by Canada’s cautiously optimistic economic outlook for 2022 and would like to begin your entrepreneurial journey, FranNet of Canada can help you get started. With consultants serving every Canadian province, there’s a representative near you who also lives and works in your area. To find your local province consultant, simply follow this link and select “Canada” on the FranNet Franchise Consultant Directory page of our website.

Jan 20, 2022