This week (July 6, 2020), has seen the release of several government fiscal updates, including those from Canada and the UK. A common theme throughout these statements is the steep rise in government borrowing and the rise in debt to GDP ratios. The good news is that borrowing rates are low and will likely remain low for the rest of the year, if not longer.
However, behind all of this governments remain challenged with reopening their economies and bringing back employees without too many job losses. Economic growth needs to be accelerated to stave off the rising amount of domestic job losses and one way to do this is to boost exports.
Canada, like many other developed countries has a large segment of small & medium sized enterprises, most of which have not expanded beyond their own borders. There are a number of reasons for this – education, risk and most importantly support. This is a significant opportunity for Canada, a well-respected and liked country.
As we continue at Elevate to support this segment, we remain focused on navigating our clients through the myriad of supply chain complexities, including border restrictions (delays at ports), trade restrictions, legal and managing flow-through financing.
Credit Insurance is just one way to reduce risk and additional resources are welcomed from federal and provincial governments in Canada as they continually evolve their strategies for economic growth.
For more information, contact us @elevatefinance.ca