Sapling Financial Consultants Report Reveals 31% of Canada's Economy Is Shielded by Lack of Competition

Toronto, Ontario--(Newsfile Corp. - December 5, 2024) - Sapling Financial Consultants announces release of new report, Canada's M&A Market Set for Growth Amidst Competition Barriers in Key Sectors, led by senior analyst Santiago Munera. The report reveals restrictions on competition are shielding one out of every three dollars of economic activity in Canada. The report uncovers the implications of increased deal-making in sectors sheltered from competition and forecasts increased M&A activity in 2025, which will spur innovation, lower consumer costs and create jobs.

An analysis of 2023 data reveals when it comes to broader regulatory constraints, it finds that nearly 31 per cent of Canada's economic activity is being affected by restrictions on competition, down from 35.1 per cent in 2017, when factoring in broader barriers that limit the mobility of goods and services across provincial lines. An analysis calculated simply as the GDP contribution of highly sheltered industries falls to approximately 20.64 per cent, down from 22.25 per cent in 2017, largely due to foreign investment restrictions, government intervention, state-owned monopolies and interprovincial trade barriers.

"The data tells a compelling story about the state of competition in Canada," said Rob Hong, co-founder & CEO of Sapling Financial Consultants. "Using 2023 data, we see some modest progress, with the share of the economy shielded from competition falling from 22.25 per cent in 2017 to approximately 20.64 per cent. However, when factoring in broader restrictions such as interprovincial trade barriers, occupational licensing, and healthcare regulations, nearly one-third of Canada's economic activity - 31 per cent - remains affected by competition-limiting policies. This underscores the critical need for reforms to reduce these barriers, foster innovation and unlock the full potential of our economy."

The report's outlook in 2025 shows that increased M&A activity is set to drive economic growth, innovation, and job creation, but competition barriers may limit these benefits' full potential. Telecom, utilities and renewable energy may see gain from significant investments and modernization next year. Policymakers must prioritize reducing competition barriers, by not addressing regulatory challenges, the grocery retail sector may continue to see high levels of consolidation.

Click here to download the full report.

For interview requests, contact: saplingfinancial@mattepr.com.

About Sapling Financial Consultants

Founded in 2015 by Rob Hong and Andreea Lupascu in Toronto, Sapling Financial Consultants is a financial modelling, due diligence and data analytics firm that combines technological innovation with financial comprehension. Sapling was named one of Canada's Top Growing Companies by The Globe and Mail's Report on Business Magazine in 2024 and awarded a 2023 CanadianSME Small Business Award for Best Professional Services. Committed to excellence in their craft and empowering mid-sized businesses, the firm champions affordable, high-calibre financial and analytical solutions, providing the tools for sustained growth and strategic advantage in a dynamic market landscape. For more information about Sapling Financial Consultants, visit www.saplingfinancial.com.

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