A majority of Canadians expect a prolonged recession over the next year as the Bank of Canada continues to raise interest rates to dampen inflation, according to a poll by Manulife Financial Corp. (MFC)
The Manulife Bank of Canada Debt Survey found that 87% of respondents think Canada will soon enter a recession. It also found more than half of people surveyed believe a recession will last at least a full year.
The findings come as a growing number of professional economists warn about the risks of a recession in 2023.
The poll also found that almost all of the Canadians surveyed (94%) are worried about inflation, as well as rising interest rates (85%).
Many Canadians are worried about being able to afford their mortgage amid rising rates. The report said most homeowners are worried about their mortgage payments (67%) and are concerned by how much money they owe (71%).
Since March, the Bank of Canada has raised its trendsetting interest rate six consecutive times. The central bank’s last interest rate decision for the year will be on December 7.
The Manulife Bank of Canada poll surveyed 2,002 Canadians in all provinces between ages 20 and 69 with household incomes of more than $40,000. The survey was conducted online by Ipsos between October 7 and 12.
Manulife Financial’s stock is down 4% this year and trading at $23.80 per share.
