Canada Inspires Confidence

Readers of Knowledge Bureau Report are heading into 2013 confident in Canada’s financial prospects.

In the January poll, Knowledge Bureau Report asked readers: “As we start 2013, are you confident in Canada's financial future?” Of the 121 readers who responded to the poll, 75% said they were confident. As one reader so succinctly put it, “We are in better shape than the rest of the world!”

That we are. Europe is still in recession and the pace of the U.S. recovery is slow if steady. In Canada, says the Bank of Canada (BofC), we can expect economic growth to accelerate as we go into 2013, with the added boost coming from stronger exports powering 2014.

“Following an estimated 1.9% in 2012, the economy is expected to grow by 2% in 2013 and 2.7% in 2014,” BofC Governor Mark Carney told reporters prior to the release of the January Monetary Policy Report (MPR).“The Bank now expects the economy to reach full capacity in the second half of 2014.”

Meanwhile, noted the MPR, “Total inflation is expected to remain around 1% in the near term before rising gradually, along with core inflation, to the 2% target in the second half of 2014.” That spells a stable economic outlook for Canada, setting it apart from the volatile global economy.

Although readers were confident in Canada’s financial future, they were not without concerns. Ontario’s economic outlook continues to weigh heavy on the residents of that province. John wrote: “I am reasonably confident of Canada’s financial future as we enter 2013 but very pessimistic about the financial future of Ontario under the current government!"

Debbie was representative of the readers who voted “No.” As she says: “I’m steamed up about how hard it is to save a buck in Canada.” If we look at what Canadians are spending on food and shelter (see Statistics Canada’s “Survey of Household Spending, 2011” below), there is not a lot left over.

But we’ll give the last word to Walli, who left this comment on the Knowledge Bureau website: “As Canadians we not only have rights but also responsibilities! If you want this country to remain strong and support the lifestyle we are enjoying, are you paying your fair share? Are you looking for cash deals? Are you buying Canadian products from Canadian businesses? Please do so! Our small population supports a vast country!"

Knowledge Bureau Report wants to thank readers for taking the time to vote and leave their comments. We look forward to your comments on our February poll.