January 6, 2026 — Canada’s longest running economic outlook tracking survey finds one of the most pessimistic outlooks in its 31-year history. Pollara’s annual economic outlook shows the majority expect the Canadian economy (61%) and Canada’s employment situation (59%) to worsen in 2026.
Much of this pessimistic is being driven by angst over US economic policy, as 65% expect the US economy to worsen next year (the most pessimistic outlook since 2009). Canadians worry US economy policy will have an impact north of the border, with 57% stressed about tariffs and the threat of further tariffs. This is a bigger source of stress than all cost of living pressure points tested other than the cost of food.
| Source of stress | % of Canadians |
|---|---|
| Cost of food and groceries | 67% |
| Tariffs and the threat of further tariffs | 57% |
| Housing expenses | 56% |
| Cost of gas at the pump | 44% |
| Income taxes | 42% |
| Electricity bills | 41% |
| Telecom bills | 40% |
| Monthly home heating | 39% |
| Auto insurance premiums | 38% |
| Loan/debt repayments | 36% |
| Sales tax | 34% |
| Prescription medication | 28% |
| Education expenses | 18% |
| Child care | 10% |
See the full details in our report and the crosstabs.
Additional commentary can be found in The Toronto Star and on the Pollara Substack.
