Article author:
Canadian Press
New research shows as inflation takes a bite It depicts a gloomy outlook for Canada's households. Rising real wages and inflation will curb economic growth.
According to a Dejardan survey released Wednesday, household budgets could become unstable in the coming months as cracks begin to emerge in the pandemic recovery. there is.
The wealth outlook looks bleak because of the increasing value of many of Canada's household risks and debt assets, the study said.
"By the end of this extraordinary economic and financial cycle, the vast wealth accumulated by Canadian households is likely to have shrunk, at least substantially," the study said.
Still, the extent of the reduction remains uncertain, and the Bank of Canada will rely on "how to make a soft landing of the economy go smoothly," Dejardan said.
On the other hand, the phasing out of government aid programs can hurt some households, but the study says savings rates tend to decline gradually as costs rise. I am.
According to a survey, low-income and high-debt Canadians are expected to have higher debt levels and higher interest rates are expected to increase consumer bankruptcy than others. You will feel the pain first.
Still, according to a survey, Canadians are busy with work and wages remain strong.
"Fortunately, income growth is expected to remain healthy even as inflation slows," the study said.
Studies show that rising wages and returning to normal inflation levels help curb loan delinquency and consumer bankruptcy.
Meanwhile, consumer spending and consumer spending growth are expected to slow in the coming months after a strong start in 2022.
The slowdown is due to flat post-economic service spending. Not only has it resumed, but the impact of rising prices on the consumption of goods.
In addition, debt repayment costs that declined during the pandemic are expected to rise gradually as interest rates rise, the study said.
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