In this issue of Insolvency Now, we continue to report on data trends from Q3 and Q4 of 2024, during which we noticed that the number of insolvency filings had steadily decreased compared with the previous year, returning to Q2 and Q3 2023 levels.
Key Takeaways:
- U.S. tariffs on Canadian goods, along with retaliatory measures, have heightened economic uncertainty, causing increased closures and insolvencies in cross-border trade sectors, resulting in an historically high number of companies seeking protection under the CCAA.
- While lower levels of insolvency filings suggest healthy business operations and domestic demand, the Bank of Canada's January Policy Report warns of relatively weak levels of business investment.
- While growth in government spending was strong through much of 2024, it is estimated to have eased in Q4.
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