More than half of those polled said there is a chance of a downturn
Many economists are saying that a recession is unlikely in 2020 but try convincing the Canadian public that all is well.
A survey for Bloomberg News by Nanos Research has found that 55% of Canadians believe that a recession is at least somewhat likely this year with 33% saying it is unlikely and 12% unsure.
The experts say that 2020 should bring growth, albeit a modest 1.6%, about the same as 2019. The US economy is seen slowing to 1.8% growth from 2.3% in 2019.
But Canadian consumers are fearful of a downturn, especially those holding the largest debt burden; and with consumer spending a key driver of the economy, the concerns of the Canadian public could become a self-fulfilling prophecy.
“Canada’s expansion will be lackluster in 2020, with drags from debt-laden consumers, global trade risks and lingering business uncertainty,” said Andrew Husby, Bloomberg Economics. “The open economy is not immune to slower growth in the U.S. or broader global manufacturing malaise. A solid labor market and incremental policy stimulus should prevent a slowdown from turning into something worse.”
Most economists are predicting modest growth in 2020, but 55% of Canadians say a recession is at least “somewhat likely” https://t.co/J8JCNPBGC8
— Bloomberg Canada (@BloombergCA) January 8, 2020
