Our 2025 CEO Outlook survey reveals a compelling paradox: Canadian CEOs are increasingly confident in the growth of their companies and industries, yet their optimism about the Canadian and global economies is waning.1
This signals a strategic concentration, reflective of a sharpening focus on what Canadian CEOs can control. They’re actively looking for ways to grow, diversify and strengthen their positions, if cautiously. But in the context of seemingly intractable geopolitical conflict and tension between us and our largest trading partner, the moment demands more than caution.
It demands that we be bold, leading fearlessly and with clear intention.
Confidence in the core, caution at the edges
The 2025 survey shows that, despite widely shifting concerns, 79 per cent of Canadian CEOs are more confident this year in their company’s growth (76 per cent last year), and 84 per cent in their industry’s prospects (markedly up from 71 per cent in 2024). But only 74 per cent express confidence in the Canadian economy (down from 83 per cent), and just 63 per cent in the global economy (a decline from 69 per cent).
Confidence in growth prospects over the next three years
Company
Industry
Country
Global economy
Source: 2025 Canadian CEO Outlook
CEOs’ broad-based caution in this moment is understandable. Consider that their top concern this year is supply chain resilience, which makes perfect sense: the combination of punitive tariffs and those seemingly intractable geopolitical conflicts is embattling not just people but also the flow of goods.
Cybersecurity concern remains in the top five, at number three—down from number two in 2024, having ceded some urgency this year to regulatory pressures, even as CEOs understand that cyber threats demand constant vigilance. Concerns about AI ethics, governance and integration round out the top five, all of that new this year.
Most pressing concerns for Canadian CEOs
2025
This divergence isn’t just statistical, it’s strategic. CEOs are doubling down on operational efficiency, talent strategy and digital transformation. Meanwhile, AI has overtaken ESG as their top priority, with 73 per cent of CEOs planning to allocate 10-20 per cent of their budgets to AI initiatives.
Top operational priorities for Canadian CEOs to achieve three-year growth objectives
Source: 2025 Canadian CEO Outlook
This is a rational response to uncertainty. But it also signals that CEOs are continuing to invest despite uncertainty in pursuit of growth and market leadership.
To build and sustain momentum, CEOs must lead with conviction. That means:
- Investing in transformation even when the economy wavers.
- Operationalizing AI to drive productivity, resilience and innovation.
- Collaborating across sectors to build shared momentum.
- Communicating transparently to build trust and alignment.
It’s not about ignoring risk—it’s about navigating it with clarity and courage. It’s also an opportunity, one that coincides with a bold national initiative: the passage of Bill C-5, the One Canadian Economy Act, which marks a turning point in Canada’s infrastructure strategy. Among other things, the Act is an invitation for CEOs to align their individual ambitions with a national framework designed to accelerate growth, deepen trade relationships and create new Canadian prosperity.
Dare to build, dare to lead
The convergence of declining macroeconomic confidence and a national push for infrastructure transformation presents a unique leadership moment to lean into the opportunity to shape Canada’s future.
Our survey asked CEOs to identify the most essential leadership qualities needed to steer their organizations through geopolitical instability and lackluster economic growth. Canadian CEOs cited the “ability to lead transformation and culture change,” acting with “greater agility and faster decision-making under pressure,” “stronger strategic foresight and scenario planning capabilities,” and ensuring “AI understanding and literacy” among their employees.
Clearly, their eyes are wide open. So, what does fearless leadership mean in this context? It means:
- Championing productivity and innovation as strategic imperatives, not just operational goals.
- Exploring blended financing models that include Indigenous equity, public-private partnerships and federal support.
- Making cybersecurity a board-level priority, investing in both technology and talent to protect data, operations and reputation.
- Aligning M&A strategies with long-term value creation and risk management, ensuring every move supports sustainable growth.
- Balancing optimism with realism, stress-testing for macroeconomic shocks, inflation and supply chain volatility—even as we pursue robust and sustainable growth.
Canada is charting a path to build big, bold and fast. As business leaders, we need to match that ambition. We can’t wait for the economy to stabilize on its own; it’s up to us to stabilize it. That would be boldness and ambition to match the moment. That would be the leadership needed to rise to this historic occasion.
This is Canada’s moment. We can’t let it pass us by. Let’s lead with courage, invest with conviction and collaborate with purpose.
Let's be fearless.
Canada is entering a pivotal time as it rewires its economy and AI transforms business. CEOs recognize that to build a prosperous and vibrant country starts in their own organization at the very top with their ability to lead and inspire their teams to accelerate innovation and growth. The time for complacency is over.
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About the KPMG CEO Outlook and Generative AI Business Adoption surveys
The 11th edition of the KPMG CEO Outlook, conducted with 1,350 CEOs between August 5 and Sept. 10, 2025, provides unique insights into the mindset, strategies and planning tactics of CEOs. All respondents oversee companies with annual revenues over US$500 million and a third of the companies surveyed have more than US$10 billion in annual revenue. The survey included CEOs from 11 key markets (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, UK and US) and 12 key industry sectors (asset management, automotive, banking, consumer and retail, energy, healthcare, infrastructure, insurance, life sciences, manufacturing, technology, and telecommunications).
KPMG in Canada surveyed 750 business leaders between August 15 and Sept. 3, 2025, for their insights into AI adoption, integration, ROI, and employee training and literacy. The online survey was conducted over Sago’s Methodify research platform. Sixty-four per cent of respondents are from privately held organizations and 36 per cent are from publicly traded organizations. Thirty per cent reported annual revenue over $1 billion; 34 per cent, between $500 million to $1 billion; 30 per cent between $100 million and $500 million; and 5 per cent, between $50 million and $100 million.