Pierre Cleroux is the Vice President of Research and Chief Economist for the BDC. Back in November 2023, we invited him to address a fully engage crowd at our Speaker Series as he unpacked the latest updates for our global, Canadian, BC, and regional economies. If you missed the opportunity to hear his data-driven insights at that sold-out event, you can catch up with Pierre and his colleagues on their outlook for the year ahead in the latest on the BDC blog.

There's a lot to unpack in this piece, even with a higher altitude economic viewpoint. Our quick takeaways:

  • Canadian real GDP is set to grow by 0.9% in 2024
  • Inflation will remain around 2%-3%
  • Food inflation will remain high, around 4%-5%
  • The key interest rate will remain at 5% in first half of 2024, slight downward later
  • Bank of Canada won't bring back neutral rate of 2.5% until 2025

An economic forecast is helpful, but how do entrepreneurs put their best foot (or feet) forward? The BDC team's message focuses on sound human resources practices to help mitigate labour and wage pressures; use technology to help boost productivity and counteract high interest rates with a slower economy; prepare for growth as interest rates slowly come down.

Sustainability and climate change are top concerns among consumer and business owners, with consumers demanding more action around sustainability. Diversity, equity, and inclusion are among key deciding factors when younger consumers engage with business - and pay equity is another aspect. 

Part of the shift to technology includes the adoption and integration of AI. The BDC anticipates we'll be seeing more and more AI used in aspects of business. "As these technologies mature, become more affordable and as more solutions enter the market, a growing number of businesses will be impacted." 

Possible pitfalls, limitations, and risks are inherent in adopting any new technology, and AI also has them. Data privacy and security are at the forefront as are intellectual property infringement concerns, along with bias and ethical considerations. Keeping these potential risks in mind, the BDC team anticipates several ways that companies will adopt AI in the coming year and advises entrepreneurs to take note.

  • AI embedded in their existing systems
  • Specialized, generative AI tools
  • Custom-built, proprietary applications

Read the article from the BDC team: 'What Should Canadian Entrepreneurs Expect for 2024?".