Surveys Show Canadian Economic Concerns for 2025

As Canada heads into 2025, inflation and the cost of living remain the top financial concerns for nearly half of Canadians, according to a TD Bank survey, though this is a slight decrease from last year. Despite ongoing economic challenges, including high food costs and a fluctuating dollar, Canadians are showing signs of improved financial optimism, with 24% feeling more confident about their finances for the upcoming year. Economists warn that potential U.S. tariffs could pose significant risks to the Canadian economy, possibly leading to a technical recession if GDP declines for two consecutive quarters. Additionally, while perceptions of recession have improved, 70% of Canadians still believe the economy is in recession, highlighting a dichotomy of cautious optimism amidst ongoing financial pressures. Millennials are particularly focused on debt repayment, while many Canadians plan to cut back on spending. The overall sentiment suggests that while challenges persist, there is a growing belief that the economic situation could stabilize in the future.