Despite the BoC’s growth outlook, Canadians are bracing for recession: TransUnion

Despite the Bank of Canada's positive growth forecasts, many Canadians are bracing for a possible recession by increasing their savings, paying down debt faster, and cutting back on retirement savings, according to data from TransUnion. The survey found that 36% of Canadians believe the country is currently in a recession, while just 27% agree with the Bank of Canada's outlook that a recession is not likely before the end of the year. Inflation is identified as the top financial concern, followed by rising home prices and the possibility of a recession. More than half of those surveyed feel their incomes are not keeping up with rising prices. The recent Bank of Canada rate hike has further increased debt servicing costs for variable-rate mortgage and home equity line of credit (HELOC) borrowers.