(Toronto) As threats of tariffs loom on the horizon, a BMO poll released Monday indicates that 63% of Canadians are worried about the possibility of a recession in the next 12 months.
Published yesterday at 3:29 p.m.
Ritika Dubey
The Canadian Press
The survey also found that 48% of respondents believe the economy will weaken over the next 12 months, while 19% expect it to improve.
Despite respondents’ pessimism, Robert Kavcic, chief economist at BMO Capital Markets, maintains that the global economy is expected to grow this year.
“While trade concerns are at the forefront of many Canadians’ minds and should be taken seriously, global economic growth is expected to continue and we expect Canada’s underlying economic growth to improve in 2025, unless serious and sustained pricing action,” he said in a press release.
The report notes that rising prices and the cost of living continued to be the main concern of Canadians.
According to the survey, 67% of respondents argue that inflation has a negative impact on their current financial situation.
-Some 44% of respondents say they spend between $100 and $300 more per month on basic expenses, while 38% say they spend more than $300 more each month.
For 61% of those surveyed, inflation is currently high and they fear that prices will continue to rise.
“On the inflation front, recent data also indicates that price growth has stabilized around the Bank of Canada’s target range. Canadians can expect the Bank of Canada to continue to slightly reduce interest rates in 2025,” adds Mr. Kavcic.
Meanwhile, the survey highlights that last year was “generally positive” for investors.
“While economic headwinds, including the prospect of tariffs, may worry Canadian households, we believe major markets can continue to make gains in 2025,” says Brent Joyce, Chief Market Strategist. investments and first managing director of BMO Private Investment Management, in a press release.
According to Mr. Joyce, investors need to remember that the Canadian stock market is not the Canadian economy “and often markets hit a wall of worry.”
The online survey of 1,500 adult Canadians was conducted by Pollara from November 8 to 18, 2024. It does not include a margin of error because online surveys are not considered truly random samples.
