The ongoing Covid-19 pandemic has shaken up economies across the globe. Many countries are in a recession, others are witnessing economic stagnation, and a handful are doing just a little better. Today, Canada is one of the most-watched economies globally because many experts believe it’s in a prime position to mirror what will happen to many other developed economies. According to data shared by the OECD, Canada’s economy was in a tough state throughout 2020, and it posted a contraction of about 5.4%. Its neighbor, the U.S., had its economy contract by about 3.7% in the same period.
This 2021, things are predicted to go very differently. The OECD revealed that it expects the country’s economy will grow by about 3.7%, which is a good recovery rate given the pandemic is still ongoing. This recovery rate will beat that of the U.S., which has also been predicted to grow by 3.5%. Here are comprehensive insights into how Canada’s economy will grow in 2021.
SME to play a crucial role in economic recovery
Many business and financial experts agree that small and medium-sized enterprises have a crucial role to play in Canada’s economic recovery journey. This is because they make up for 60% of total employment and are responsible for over 50% of the country’s economy. They pointed out that the government’s role is to provide confidence to these SMEs and enable them to resume full operations as soon as possible. As vaccination across the country is ongoing, things would work out much better if the process was sped up so that everyone is vaccinated in time. This will ensure that small and medium-sized businesses can safely reopen and invite their employees back to work.
It’s not yet clear how the vaccination will hold up in the coming days; therefore, resuming full operations for many SMEs might be a prolonged process. With this in mind, the government should implement measures to ensure that the businesses can quickly digitize their operations and adopt remote working where possible. Only employees who do tasks that cannot be done online should be going back to work.
Training workers on the new modus operandi is a must
The idea of having the employees of the SMEs work remotely is exciting, but the reality is much more chilling. A majority of the Canadian SME workforce has had limited exposure to such technology. As a result, for many companies that have tried taking the route, things have not worked as smoothly. This does not mean that it’s a bad idea; it’s just that there have been significant deeps in productivity as employees try to catch up with the new technology. To solve this problem, the businesses and the government have to work hand in hand to train workers on the new modus operandi. This will allow the SMEs to operate at their full potent6ial will keeping workers safe and give a massive boost to economic growth.
Amid this pandemic crisis, it’s also time for companies in Canada to rethink their resolve to stop climate change. In this time of significant change, a lot more can be done for the greater good of the planet.
