For most Canadians, the proverbial glass is half empty when it comes to the economy in 2013, a poll commissioned by Waterloo, Ont.-based Sun Life Financial suggests.
Survey results reveal that 26% of Canadians are pessimistic about the economy in 2013. More specifically, 31% of Ontarians and 28% of Quebecers are cynical about the Canadian economic outlook for the coming year.
This pessimism is not without reason, says Sadiq Adatia, chief investment officer, Sun Life Global Investments in Toronto. The level of household debt and the slow-down of the housing market are all reasons for concern, says Adatia. Even the increase in job numbers in November, he says, could quickly reverse because fewer people will be able to find work, in construction for example, due to a lacklustre housing market.
Canadians are also concerned about the uncertainly surrounding the fiscal cliff in the United States (an austerity measure triggered by tax increases and spending cuts).
According to the survey, 63% of Canadians are concerned that the economy will be hurt if the U.S. fiscal cliff situation is not resolved. The problem is that many Canadians remember the U.S. debt ceiling crisis in 2011, says Adatia, and the concern is that any deal made in regards to the fiscal cliff will be left to the last minute and the economy will get off to a bad start in 2013.
The poll also found that 54% of Canadians feel that they are no better off financially today than they were a year ago. Specifically, 60% of Ontarians and 57% of Atlantic Canadians feel their economic situations did not improve in 2012.
The poll was conducted between Nov. 20 and 27, 2012 and is a sampling of 1,277 adult Canadians from the Ipsos Canadian online panel.