Economic concern grows as most Canadians brace for recession

Rising inflation rates on basic goods still hit hard for most, poll shows

Economic concern grows as most Canadians brace for recession

A recent Ipsos poll has found that while Canadians are still feeling the effects of the economic downturn and high inflation rates for necessities, they also see more difficult times ahead.

Nearly nine tenths of respondents expressed concern that Canada will experience an economic recession within the next year, with 37% of respondents stating that they are greatly worried.

Economic stress has weighed on Canadians' minds over the last year, according to Ipsos research. Worry increased further between October and November 2022, with growing unease evident across most areas of concern.

For instance, 71% of Canadians are concerned that interest rates will increase faster than they can adjust (an increase of 4 points); 61% that they may not be capable of paying for gas (13 points); 53% that they may not be able to feed their families (9 points); and 42% that they may lose their jobs if the economy does not improve (+9 points).

All those worries tie back to apprehensions about a potential impending recession, shared by 86% of respondents.

Two thirds (67%) of people are still concerned about how the economy may affect their retirement plans. Angst over Christmas spending has risen dramatically as the holiday season has begun.

Ipsos research has also monitored the actions Canadians have taken to deal with high inflation rates, which largely remain consistent with data from May 2022, with some variations that suggest Canadians have loosened their budgets slightly.

Most Canadians say they have reduced their dining out spending this year (52%, -2 points) to save money.

A large percentage also report reducing their spending on non-essentials like entertainment (46%, unchanged), new apparel (44%, -3 points), and travel (31%, unchanged), as well as both domestic and international trips (28%, -5 points).

A little less than one-third (31%) of Canadians say they have utilized couponing or sales apps, and fifty percent (50%) of them say they have looked at flyers for bargains this year to deal with increasing inflation.

It may not be surprising that Canadians are still worried about the future, both nationally and locally, given their divided opinions on the most recent economic plan from the federal government.