As we enter 2023, a majority of Canadians are worried about a recession in the year ahead, according to a survey by marketing firm Leger.
The poll found that 81% of Canadians are worried about the possibility of a recession over the next 12 months, with more than half of people actively preparing for an economic downturn.
According to the survey, 56% of respondents are preparing for a recession in some way. To do that, 38% of Canadians are cutting back on their expenditures.
Other ways people are preparing for a recession include paying down debt (18%), keeping their savings liquid (14%), and asking for a raise or taking on more work (6%).
However, 39% of Canadians say they are not preparing for a recession at all, with 22% believing that there is nothing they can do to manage an economic contraction.
Homeowners are more likely to be worried about a recession (84%) as opposed to those who rent (80%). With increasing interest rates, Canadians who have variable-rate mortgages are starting to reach their trigger rate, where their regular mortgage payment no longer covers the interest owed.
Many Canadian banks are starting to see an increase in mortgage defaults and foreclosures as people struggle to keep up with higher mortgage payments.
People older than age 55 are less likely to be worried about a recession (25%) compared to people aged 18 to 34 (28%).
The online survey of 1,526 Canadians older than age 18 was completed between December 9 and 12, 2022, using Leger’s online panel.
