A recent poll by BMO reveals that 63% of Canadians are worried about a possible recession, while 48% think the economy will slow down shortly, according to The Canadian Press.
Concerns Over Recession and Economic Woes on the Rise
A Bank of Montreal (BMO) survey reveals that 63% of Canadians are worried about a possible recession in the next year. Nearly half (48%) believe the economy will decline, while only 19% foresee any improvement. These findings come amidst fears of rising tariffs and global uncertainties, which have heightened concerns across the country.
BMO Capital Markets senior economist Robert Kavcic, however, suggests a different perspective. "Global economic growth is likely to persist this year," Kavcic noted, adding that Canada’s economy could see better times in 2025, provided major tariff actions are avoided.
Inflation Continues to Strain Canadian Wallets
Rising costs and inflation dominate as top concerns for Canadians, with two-thirds admitting inflation has negatively affected their finances. Many are feeling the pinch: 44% report spending an additional $100 to $300 monthly on basic needs, while 38% are shelling out over $300 more than usual.
A staggering 61% believe inflation will remain high, causing prices to climb further. Yet, Kavcic offered a glimmer of hope: “Price growth has steadied near the Bank of Canada’s target. We anticipate modest rate cuts in 2025 to ease inflationary pressures.”
Investors Navigate a Mixed Economic Outlook
Despite economic uncertainty, the survey painted a positive picture for investors in 2024. Brent Joyce, Chief Investment Strategist at BMO Private Investment Counsel, emphasized that markets often thrive despite broader economic fears. “The Canadian stock market doesn’t directly mirror the economy, and it’s not uncommon for markets to grow even amid widespread worries,” Joyce said.
The survey, conducted online by Pollara from November 8–18, 2024, polled 1,500 adult Canadians. While it lacks a margin of error due to its non-random sample, the findings shed light on Canadians’ growing unease about the economic challenges ahead.
