With major political changes expected in both the United States and Canada, Canadians are increasingly concerned about the future of the Canadian economy, a BMO survey reveals.
The specter of a recession over the next 12 months worries 63% of respondents. Furthermore, half of the population (48%) believes that the economy will weaken by the end of the year. In contrast, only 19% of the population expects the Canadian economy to improve.
According to BMO, rising prices and costs of living remain a major concern for Canadians. More than two thirds (67%) of them say that inflation has a negative impact on their current financial situation.
Canadians are also concerned about rising prices in the future, with 61% saying inflation is currently high and they expect prices to continue to rise.
This BMO survey was conducted online with a non-probability sample of 1,500 Canadian adults, from November 8 to 18, 2024. For comparison, a probability sample of 1,500 respondents would have a margin of error of more or less 2.5%, 19 times out of 20.
-Additional expenses
The survey quantifies the extra amount Canadians are spending on basic spending due to inflationary forces. No less than 44% say they spend between $100 and $300 more per month, while 38% estimate their excess spending at more than $300 per month.
While these concerns should be taken seriously, BMO Capital Markets chief economist Robert Kavcic says he expects Canadian economic growth to continue in 2025, “barring serious tariff action and sustained”.
On the inflation front, recent data indicates that price growth has stabilized “around the Bank of Canada’s target range,” adds Mr. Kavcic. He says he expects the Bank of Canada to continue to slightly reduce the key rate in 2025.
