Financial Fears Mount as Most Canadians (86%, +3pts) Are Concerned Canada Will Face a Recession Within the Next Year
Toronto, ON, December 7th, 2022 – Canadians continue to feel the pinch from the economic downturn and high inflation rates for everyday items, and a new Ipsos poll conducted exclusively for Global News finds that Canadians see further hard times looming on the horizon: 86% express concern that Canada will face an economic recession within the next year, with 37% of Canadians saying they are very concerned.
Further, in the span of just one month, concern over a number of day-to-day economic issues has increased significantly, including upcoming holiday spending. Given the consistency of concern about these issues over the last year, Canadians may be far from out of the woods on money matters.
Majority Remain Concerned Over Recession, Inflation, and Making Ends Meet
Ipsos research has shown that economic stress has been top-of-mind for Canadians over the last year.[i][ii] Between October and November 2022, concern has further grown, with most items of concern seeing significant increases. For example, 71% of Canadians are worried interest rates will rise quicker than they can adjust (+4 pts), 61% say they are concerned they might not be able to afford gasoline (+13), 53% say they are worried they might not have enough money to feed their families (+9), and, in light of worries over a potential upcoming recession (86%), 42% are worried they may lose their job if the economy does not improve (+9). Worry over economic troubles impacting retirement plans has remained consistently high month-over-month (67%).
With the holiday season in full swing, worries over holiday spending have also increased significantly: 52% of Canadians say they are worried they might not have enough money to buy holiday gifts for loved ones (+7), and just under half (48%) say they are worried they will get in over their head with holiday spending (+15).
How concerned are you about the following:
|
|
% Somewhat + Very Concerned |
|
|
November 2022 |
October 2022 |
|
|
That Canada will face an economic recession within the next year |
86% (+3) |
83% |
|
That inflation will make everyday things less affordable for you |
81% (-3) |
84% |
|
That interest rates will rise quicker than you can adjust |
71% (+4) |
67% |
|
That economic troubles will impact your retirement plans |
67% (-) |
67% |
|
That you might not be able to afford gasoline |
61% (+13) |
48% |
|
That you might not have enough money to feed your family |
53% (+9) |
44% |
|
That you might not have enough money to buy holiday gifts for family or loved ones |
52% (+7) |
45% |
|
That you will get in over your head with holiday spending |
48% (+15) |
33% |
|
That you may lose your job if the economy does not improve |
42% (+9) |
33% |
Consistent with October 2022, Women are significantly more likely than men to express concern over the majority of these items, including the potential for a recession (92% vs. 80% of men); economic troubles impacting retirement (72% vs. 62% of men); interest rates rising quicker than they can adjust (76% vs. 67% of men); getting in over their head with holiday spending (52% vs. 43% of men); and not having enough money to buy holiday gifts (56% vs. 48%). Younger Canadians are also more likely to feel the pressure of economic downturn, in particular as it relates to getting in over their head on holiday spending (69% vs. 53% 35-54 and 26% 55+) and having enough money to buy holiday gifts (68% vs. 58% 35-54 and 35% 55+).
Concern over holiday spending in particular is also higher among parents: two-thirds (65%) of parents say they are concerned about getting in over their heads with holiday spending (vs. 41% of those without children), and a similar proportion (64%) are worried they may not have enough money to buy holiday gifts (vs. 48% of those without children).
Canadians Continue to Cut Back on Non-Essentials to Deal with High Inflation
Ipsos research has also tracked the measures Canadians have taken to cope with high inflation rates, which remain largely on par with data from May 2022, with some fluctuations which suggest Canadians have eased their budgets slightly.[iii] Currently, a majority of Canadians say they have cut back on dining out (52%, -2 pts) this year in order to save money. High portions also say they are cutting back on other non-essentials such as entertainment (46%, no change), buying new clothing (44%, -3), and travel (within Canada [31%, no change] and outside of Canada [28%, -5]). Half (50%, -1) of Canadians also say they have looked at flyers for sales this year to cope with high inflation, and just under one-third (31%, no change) say they have used couponing or sales apps.
Among parents, 34% (-2 pts) say they have told their kids “no” more often this year, and 13% (-4 pts) have cut back on organized sports for their kids.
With Canadians offering mixed reviews of the latest federal government economic plan,[iv] it is perhaps unsurprising that they remain concerned about the future both nationally as well as closer to home. Time will tell how long it will be until sentiment improves, or whether we are indeed on a sure road to recession.
About the Study
These are some of the findings of an Ipsos poll conducted between November 11th-15th, 2022, on behalf of Global News. For this survey, a sample of 1,005 Canadians aged 18+ was interviewed. Quotas and weighting were employed to ensure that the sample’s composition reflects that of the Canadian population according to census parameters. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ± 3.5 percentage points, 19 times out of 20, had all Canadians aged 18+ been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.
For more information on this news release, please contact:
Sean Simpson
Senior Vice President, Ipsos Public Affairs Canada
+1 416 324 2002
[email protected]
About Ipsos
Ipsos is the world’s third largest market research company, present in 90 markets and employing more than 18,000 people.
Our passionately curious research professionals, analysts and scientists have built unique multi-specialist capabilities that provide true understanding and powerful insights into the actions, opinions and motivations of citizens, consumers, patients, customers or employees. We serve more than 5000 clients across the world with 75 business solutions.
Founded in France in 1975, Ipsos is listed on the Euronext Paris since July 1st, 1999. The company is part of the SBF 120 and the Mid-60 index and is eligible for the Deferred Settlement Service (SRD).
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[i] https://www.ipsos.com/en-ca/news-polls/worry-over-inflation-on-the-rise-six-in-ten-canadians-worried-might-not-have-enough-feed-family
[ii] https://www.ipsos.com/en-ca/Inflation-Concerns-Unabated-84%25-Canadians-Remain-Concerned-Inflation-Will-Continue-to-Make-Things-Less-Affordable
[iii] https://www.ipsos.com/en-ca/news-polls/canadians-cutting-back-on-dining-entertainment-amidst-inflation
[iv] https://www.ipsos.com/en-ca/news-polls/canadians-offer-mixed-reviews-of-economic-update
