This past weekend, Toronto hosted one of the G20 summits that have been occurring twice a year since 2008. One of the hot topics on the agenda was economic recovery after our recent recession, and due to the European debt crisis that is currently underway.
While there was a divide among attendees about which was better – more stimulus spending to help the economy recover, or more conservative spending and balanced budgets – all countries involved in the G20 summit have agreed to reduce their deficit by half by 2013. By the year 2016, these countries are all hoping to have stabilized their debt loads.
So what does that mean for Canadian businesses and Canadian business funding?
While nothing official has been announced as to what Canada will be doing to reduce its deficit, Canada was agreeing with the European countries that what is required to reach the goal of cutting back stimulus spending, so we can speculate that stimulus spending will be reduced. And that could mean, unfortunately, that a lot of programs small businesses get assistance from would not be able to provide as much fiscal support as we have become used to.
Of course, we don’t know what will happen for certain yet. But we will definitely be keeping an eye on what is decided about Canadian stimulus spending, and will be keeping you up-to-date with any announcements that are made that could have an effect on the way you run your business.