But overall economic pessimism has declined compared to recent years
Canadians are feeling more optimistic about their financial situation compared to recent years, but two in five still say they are worse off in 2024 than they were last year.
A new survey from the Angus Reid Institute shows that fewer respondents are concerned about their finances this year thanks to cooling inflation and other factors, but 38% feel that things for them are going in the wrong direction. This is a three-year low but remains elevated by historical standards based on 14 years of the institute’s data.
The institute’s Economic Stress Index shows for December 2024 shows that 27% say they are struggling (down from 33% in September), 22% are uncomfortable (no change), 24% are comfortable, and 28% are thriving.
Quebec has the highest share of thrivers (38%) while New Brunswick has the largest percentage who say they are struggling (33%).
More than a quarter of respondents said they are pessimistic about where their finances might be at the end of 2025, although again this is a three-year low for this metric.
The report also found that the share of people saying that they are struggling with their rent or mortgage payments has fallen to 39% now compared to 44% in June, thanks to mortgage rates easing and rent rises easing. However, this rises to 61% among recent immigrants.
Food inflation remains a major concern though with 48% saying that feeding their household is “difficult” or “very difficult.” Grocery costs are particularly tough for newcomers to Canada with 63% of those who have lived in the country for less than a year finding these bills challenging compared to 47% of those who were born here.
More than half of all respondents said that the GST/HST exemption will make no difference to their finances at all, rising to 61% among those who say they are struggling.
