Likely economic slowdown in 2020 is stoking much of this anxiety
Among Canada’s most indebted, the prospect of a recession this year is the foremost worry in their minds.
A poll for Bloomberg News by Nanos Research Group has found that 55% of Canadians believe that a recession has a “somewhat likely” chance of manifesting this year.
Meanwhile, 33% stated that a recession is not likely. Around 12% indicated that they were unsure of the possibilities.
These fears were most apparent in Alberta, a province still trying to find its footing back after several body blows from the oil industry’s recent struggles. Nearly three-quarters of those polled in the province are bracing for a recession this year.
Not helping are the multiple predictions of pronounced slowdown over the next few months.
“Canada’s expansion will be lackluster in 2020, with drags from debt-laden consumers, global trade risks and lingering business uncertainty,” Andrew Husby of Bloomberg Economics explained. “The open economy is not immune to slower growth in the US or broader global manufacturing malaise.”
Fortunately, Canada’s robust performance will for the most part protect the economy.
“A solid labour market and incremental policy stimulus should prevent a slowdown from turning into something worse,” Husby said.
Scotiabank vice president and deputy chief economist Brett House offered similar assurances, noting that the widespread anxiety surrounding the nation’s economic health is mostly unsubstantiated.
“Going into 2020, we think it’s going to be another year where the Canadian economy performs in kind of a ‘meh’ sort of way,” House told CTV News earlier this month.
“On the other hand, it’s not going to be the long feared recession that a lot of headlines have pointed to either. We have a lot of uncertainty out there … but we also have a lot of fundamental strengths that should keep growth going.”
