4 in 10 Canadians cite prospect of renewed U.S. recession as chief concern

By National Underwriter

National Underwriter


By Warren S. Hersch

Four in 10 Canadians say the possibility of a renewed recession in the U.S. is the No. 1 threat to Canada's continuing prosperity, according to a new report.

Published in a new BMO Harris Private Banking study, the research finds that Canadians remain optimistic about Canada's strong economic performance and financial outlook. But the study reveals that 72 percent of Canadians are worried about how economic troubles in other parts of the world may impact Canada's relative prosperity. Among the areas of concern noted in the report:
  • The possibility of the United States slipping into another recession is the primary concern, with 41 percent of Canadians listing this as the number one threat to Canada's prosperity.

  • The negative impact of the sovereign debt crisis in the Eurozone (cited by 23 percent of respondents), slowing growth in China and India (8 percent) and tensions in the Middle East (7 percent).

On the brighter side, the study reveals that:
  • The majority of Canadians (83 percent) are proud of Canada's economic performance compared to the economies of the U.S., Europe and other parts of the world.

  • Three in four (74 percent) of Canadians are optimistic about Canadian financial markets, but 40 percent are pessimistic about what the future holds for global financial markets.

  • Half of Canadian respondents anticipate that their current investments will grow in value over the next year.

  • Canadians are confident about the performance of several domestic industry sectors, with 49 percent expecting the energy sector to grow in the coming years and 48 percent expecting the same from the information technology sector.

Looking ahead, half of Canadian investors expect their investment portfolios to increase in value by Canada Day 2013, which falls on July 1. More than one-third (34 percent) of the group predict modest gains of between one and five per cent.

Only 12 percent of Canadians say their investments will decrease over the next year.

Originally published on LifeHealthPro.com