Canada's already in recession, say majority of BC small businesses

Canada isn't officially in a recession.

But don't tell small businesses in BC that.

In fact, 57% of BC small business owners surveyed for Merchant Growth's Economic Downturn Poll believe Canada is already in a recession or economic downturn.

And, small businesses in the province are taking action with 71% already making adjustments to make it through current and future tough times.

Those cutbacks include reducing spending (65%), pausing expansion plans (35%), delaying hiring (30%) and reducing inventory (30%).

While 75% are concerned about a recession, 18% are actually scared and not confident in their ability to navigate a recession.

The other side of that coin is 71% of BC small businesses are confident they can get through a recession.

But, BC small businesses want help from various levels of government, lenders, landlords and utilities in order to survive the economic slowdown.

- 68% want better access to low-interest loans

- 57% cited permanent tax relief, such as expansion of the small business deduction limit and a refundable credit for supply chain diversification

- 43% want wage subsidies or hiring incentives

- 32% cited rent or utility subsidies

- 21% want reduced regulatory burdens and less red tape

NowMedia spoke about the survey in-depth.

Merchant Growth, which commissioned the survey, is an online facilitator of small business funding.

A recession is officially defined as two quarters, or six months, of shrinkage in gross domestic product (GDP) output.

Statistics Canada is currently compiling second quarter GDP numbers and won't release them until August.

The latest data from StatsCan shows the GDP contracted by 0.2% in February and 0.1% in April.

While there's no official word on second quarter GDP, many fear Canada could already be in recession.

TD Bank, BMO, National Bank and Deloitte have already warned in their economic forecasts that Canada has the potential for a mild recession through the second and third quarters (April through September).

There are a myriad of reasons for the downturn -- uncertainty in the wake of tariffs and the trade war with the US has forced businesses to tighten their belts, leading to layoffs, stagnant or declining incomes for both business and employees, reduced investment and calling off or delaying future projects and innovations.

As a result, unemployment is up, BC inflation is still above the 2% target at 2.3% and companies are nervous.