BMO Poll Finds Majority of Canadians Worried About Possible Recession
Despite looming tariff threats, a recent Bank of Montreal survey revealed that 63 percent of Canadians are worried about a possible recession in the next 12 months.
According to the online poll, 48 percent of respondents believe that the economy will weaken in the upcoming year, while 19 percent are optimistic about an improvement.
Although there is a sense of pessimism among those surveyed, BMO Capital Markets senior economist Robert Kavcic emphasized that the global economy is projected to grow this year.
Regarding the impact of rising prices and living costs, more than two-thirds of Canadians are troubled by inflation affecting their financial situation negatively.
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Among the respondents, 44 percent mentioned spending an additional $100 to $300 per month on basic living expenses, while 38 percent stated that they spend over $300 extra each month.
Additionally, 61 percent of Canadians expressed concerns about high current inflation rates and the anticipation of further price increases.
Kavcic noted that recent data indicates stable price growth around the Bank of Canada’s target, with expectations for further interest rate reductions by the Bank in 2025.
The survey also highlighted that last year was generally positive for investors, with Brent Joyce, chief investment strategist at BMO Private Investment Counsel, believing that major markets still have potential for growth in 2025 despite economic challenges.
Emphasizing the distinction between the Canadian stock market and the economy, Joyce advised that markets often thrive amidst uncertainties.
Conducted by Pollara from Nov. 8 to Nov. 18, 2024, the online survey involved 1,500 adult Canadians and does not provide a margin of error due to the nature of online surveys.
