The Bank of Canada’s most recent Survey of Consumer Expectations reveals a generational divide in financial stress, with prime working-age Canadians (25–54) reporting a record-high 27 percent probability of missing a future debt payment and nearly half of young Canadians (18–24) expecting to miss a payment. Notably, Canadians 55 and older reported just 0.7 percent.
Despite surprisingly strong top-line GDP numbers, the underpinnings of the economy are showing signs of strain. Canadians are likely feeling stretched thin due to factors like elevated youth unemployment and servicing existing debt loads like credit card payments, car loans or student debt, lowering the propensity to drive new consumption. For more, see this C.D. Howe Institute Op-Ed published in the Globe and Mail.
