February 8, 2022 — The results are in for the 27th annual edition of Pollara Strategic Insights’ Economic Outlook study – Canada’s longest-running study of the public’s perceptions and expectations of the economy and their personal financial situation.
It reveals that most Canadians are in a psychological recession and tend to hold negative expectations for the economy, although perceptions are somewhat improved compared to January 2021.
Yet, when considering their personal finances, most continue to report a positive situation – as many Canadians have higher levels of savings due to reduced consumer spending and unprecedented government supports (i.e. CERB) during the pandemic. Buttressing this sense of financial stability, the study also found significantly reduced public expectations of job losses.
However, there are potential storm clouds on the horizon. When it comes to public expectations for 2022, almost half of Canadians now feel that they will fall behind the pace of the cost of living in the months ahead. An equal proportion say they will keep pace with, or outpace, the cost of living, but many Canadians may have more negative perspectives on their personal finances dependent upon the trajectory of the rate of inflation.
- When it comes to the cost of living, most Canadians (69%) are stressed about grocery prices, and majorities (50-56%) of the public are also stressed about the gas prices, housing expenses, income taxes, and telecom bills.
See the full details in our report and commentary on the study in the Toronto Star.
