{"id":5064,"date":"2026-04-20T21:16:34","date_gmt":"2026-04-20T21:16:34","guid":{"rendered":"https:\/\/www.worldpumpnews.com\/?p=5064"},"modified":"2026-04-20T21:16:34","modified_gmt":"2026-04-20T21:16:34","slug":"fewer-canadian-firms-were-anticipating-a-recession-before-iran-war-began-national","status":"publish","type":"post","link":"https:\/\/www.worldpumpnews.com\/?p=5064","title":{"rendered":"Fewer Canadian firms were anticipating a recession before Iran war began – National"},"content":{"rendered":"

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Data released on Monday by the Bank of Canada says that \u201cthe share of firms planning or budgeting for a recession in Canada over the next 12 months\u201d dropped in February, before the Iran war began.<\/p>\n

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The data showed the sentiment declined from 22 per cent to nine per cent, marking the lowest level since the series began in 2023 and coming at a time when \u201cconcerns around trade tensions and tariffs were at a peak.\u201d<\/p>\n

The survey was conducted from Feb. 5 to 25 \u2014 before the U.S. and Israel attacked Iran on Feb. 28 in a war that has sent shockwaves through global supply chains.<\/p>\n

\u201cExpectations at all horizons remain below the peak reached during the height of the trade conflict in early 2025,\u201d the survey reads.<\/p>\n

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The survey is based on interviews with about 100 firms across the country, stating that \u201ctrade tensions are weighing less on firms\u2019 outlooks.\u201d<\/p>\n

\u201cCompared with recent quarters, fewer businesses reported impacts on their expected sales or costs,\u201d the survey reads. \u201cAs a result, firms began the first quarter of 2026 better positioned than they were in late 2025 to face the economic shock associated with the war in the Middle East.\u201d<\/p>\n

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Despite these improvements, \u201coutlooks remain subdued among firms in, or serving, industries that are facing export tariffs or that are indirectly impacted by U.S. trade policies.\u201d<\/p>\n

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Fewer businesses also reported that they faced obstacles to growing their export sales due to uncertainty around U.S. and Canada\u2019s trade relationship.<\/p>\n

\u201cFor example, fewer firms indicated that they are hesitant to enter the U.S. market or that U.S. customers are hesitant to use Canadian suppliers,\u201d the survey reads, with just a \u201csmall share\u201d of exporting firms reporting increased sales to non-U.S. customers.<\/p>\n

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\u201cMost businesses had revised up their expectations for input prices, mentioning specifically fuel, freight, fertilizers and exchange rates.\u201d<\/p>\n

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