Despite the significant progress on inflation this year, almost half of Canadians are concerned that inflation will continue to rise in 2024, according to a survey from IG Wealth Management. Six in 10 respondents believe Canada is already in a recession, and two-thirds expect one next year.
The 2023 IG Wealth Management Financial Confidence Index dropped one point from last year, for a score of 50. That’s down seven points from 2021.
The dip from last year owes to a dimmer view of the economy. Preliminary data from Statistics Canada suggests a small contraction for the Canadian economy in third quarter, which would follow a contraction in the second quarter. StatsCan’s official GDP report for Q3 will be released Thursday.
Respondents’ optimism about the stability of the economy dropped to 51% in 2023 from 56% last year, IG said, and nearly one-third said governments and other institutions aren’t doing enough to address fiscal issues.
Housing affordability topped the list of concerns in terms of basic needs, cited by 62% of respondents. Another 39% were concerned about soaring food costs. More than half (56%) said the higher cost of living means they’re saving less for retirement. One in five were concerned about maintaining their standard of living in the year ahead.
Respondents with a financial advisor reported confidence levels 29% higher than those without, according to the survey.
The online survey of 2,000 respondents was conducted by Ipsos from Sept. 26 to Oct. 2.