December 18, 2023
According to the year-end issue of the Trade Confidence Index (TCI) results from Export Development Canada (EDC), exporter confidence fell to 65.7 points after rebounding in mid-2023. The TCI sits below the historical average of 72.8.
The biannual survey, which gathers the views of more than 1,200 Canadian exporters, reveals that businesses of all sizes experienced a decline in confidence, with large businesses reporting the lowest confidence.
More than two-thirds of respondents claim they have been negatively impacted by high inflation and half (50%) believe that its effects will persist for more than a year. Additionally, most respondents (69%) say they are negatively impacted by the high interest rate environment.
A global economic slowdown is weighing on Canadian exporters as most respondents (76%) expect the sluggish economy to have a negative impact on their business, and 73% expect their export sales to suffer as a result.
Survey respondents identified a deep global recession, followed by supply chain issues and a U.S. financial crisis as top risks to their business.
Source: EDC