As the threat of tariffs looms, a new Bank of Montreal survey finds 63 per cent of Canadians express concern about the possibility of a recession within the next 12 months.
The online poll also found that 48% of those surveyed think the economy will weaken over the next 12 months, while 19% expect it to improve.
Despite respondents’ pessimism, Robert Kavic, senior economist at BMO Capital Markets, said the global economy is expected to grow this year.
“While trade concerns are top of mind for many Canadians and should be taken seriously, global economic growth is expected to continue and unless there are serious and sustained tariff measures, “We expect Canada’s underlying economic growth to improve in 2025.” .
Rising prices and the cost of living continue to be a top concern for Canadians, according to the survey.
More than two-thirds of Canadians say inflation is having a negative impact on their current financial situation.
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44% of respondents said they spend between $100 and $300 more each month on basic living expenses, and 38% said they spend more than $300 more each month.
61% of Canadian respondents said they are concerned that inflation is currently high and prices will continue to rise.
“On the inflation front, recent data shows that inflation has stabilized around the Bank of Canada’s target. Canadians can expect the Bank of Canada to continue to make further modest interest rate cuts in 2025.” said Kavcic.
Meanwhile, the survey said last year was “generally positive” for investors.
Brent Joyce, chief investment strategist and managing director at BMO Private Investment Counsel, said: “While economic headwinds such as the prospect of tariffs may be a concern for Canadian households, we believe that key markets remain “We think there is still room to continue increasing profits.” In a statement.
Mr. Joyce said investors should remember that the Canadian stock market is not the Canadian economy, adding: “It’s common for markets to overcome walls of fear.”
The online survey surveyed 1,500 adult Canadians and was conducted by Polara from November 8 to November 18, 2024.
This study does not include a margin of error, as online surveys are not considered true random samples.
