It's not just what we know that's causing concern, it's what may be ahead
Canadian consumers are feeling anxious as continued economic uncertainty combines with the certainty of their current financial pressures.
Despite the Canadian economy performing better than expected for now, a new survey from CPA Canada and BDO Debt Solutions reveals that 83% of respondents are changing their financial strategies due to the current economic climate while 76% say their financial wellbeing is being negatively impacted by how things are right now. Around one third say they are worse off now than a year ago.
Inflation and the rising cost of living remain the key concerns, and this is being exacerbated by other issues including trade war threats and tariffs, which are adding to the uncertainty and the potential fallout which may mean even higher prices and job losses.
“The financial caution we’re seeing isn’t just about inflation—it’s about uncertainty,” says Li Zhang, financial literacy leader at CPA Canada. “Many Canadians are bracing for worst-case scenarios, adjusting their financial plans to safeguard against potential downturns.”
The changes in behaviour include two thirds of respondents who plan to reduce expenses—but despite growing concerns, only around one quarter say they plan to pay down debt with consideration of the current economic climate.
CPA Canada’s chief economist David-Alexandre Brassard says we are seeing “weaponized uncertainty” due to the trade war issues. “Personal finance doesn’t exist in a vacuum,” he said. “As consumer confidence drops and spending weakens, Canada could face slower economic growth.”
Other recent reports point to worsening Canadian consumer finances including a rise in people filing for insolvency and a spike in the share of people who say they have given up hope of ever being debt free due to the level of debt they are struggling with.
