Survey reveals economic anxiety among Canadians, despite projections of growth

A majority of Canadians are increasingly concerned about the prospect of a recession and the rising cost of living, according to a new survey conducted by the Bank of Montreal (BMO).
The poll found that 63% of respondents expressed worry over the potential for a recession within the next 12 months. Meanwhile, 48% believe the country’s economy will weaken over the coming year, with only 19% expecting economic improvement.
Despite these concerns, BMO Capital Markets senior economist Robert Kavcic noted that the global economy is projected to grow in 2025. “While the trade concerns are front and centre for many Canadians and should be taken seriously, global economic growth is expected to continue and we expect underlying Canadian economic growth to improve in 2025, barring serious and sustained tariff action,” he said.
Rising costs burden Canadians
The survey highlighted the continued financial strain many Canadians face, as inflation and rising living expenses weigh heavily on household budgets. More than two-thirds of respondents reported that inflation is negatively impacting their financial situation, The Canadian Press noted.
Of those surveyed, 44% said they are spending an additional $100 to $300 monthly on basic living costs, while 38% reported spending over $300 extra per month.
Concerns about inflation remain high, with 61% of respondents fearing further price increases in the near future. However, Kavcic offered some optimism, pointing to recent signs of stabilization in price growth. “On the inflation front, recent data also indicates price growth has stabilized around the Bank of Canada’s target. Canadians can expect the Bank of Canada to continue to reduce interest rates modestly further in 2025,” he added.
Investor outlook
Despite economic uncertainties, the survey indicated that 2024 was “generally positive” for investors. Brent Joyce, chief investment strategist at BMO Private Investment Counsel, emphasized the resilience of financial markets.
“While economic headwinds, including the prospect of tariffs, may be a concern for Canadian households, we still see room for the major markets to continue making gains in 2025,” Joyce stated. He also reminded Canadians that the stock market operates independently of the broader economy, often thriving amid uncertainty.
The survey, conducted online by Pollara between November 8 and 18, 2024, included responses from 1,500 adult Canadians. As an online poll, it does not carry a margin of error, as it is not considered a random sample.
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