Half of Canadians are concerned that inflation will continue to increase next year and 60 per cent believe the country is already in a recession, this according to the most recent Financial Confidence Index published by Ipsos Canada and IG Wealth Management, part of Investors Group Financial Services Inc.
The sixth annual edition of the IG Wealth Management Financial Confidence Index is the result of work done with 2,000 survey respondents who say their trust in the economy is declining.
“This year’s index found that, after an uptick in 2021 when the index stood at 57, the downward trajectory of 51 in 2022 continued into 2023 with the index landing at 50. Although the index only fell by one point, this demonstrates that Canadians’ faith in the health of the economy was not restored in 2023 and that anxiety about the future persists.”
The researchers note that the financial confidence of those working with a financial advisor is 29 per cent higher than those without one.
In addition to those who believe the country is already in a recession, two-thirds or 68 per cent believe the same conditions will continue into 2024. “Canadians’ optimism about the stability of the economy dropped from 56 per cent last year to 51 per cent in 2023,” they state. More than half, 56 per cent, reported that a higher cost of living is causing them to save less for retirement.