This quarterly economic forecast presents the medium-term outlook for the Canadian economy. This release focuses on household consumption. For an overview of all major components of the economy, go to the Canadian Outlook main page.
Shopping Frenzy to Resume After Economic Reopening: Canada’s Two-Year Household Consumption Outlook
Shopping Frenzy to Resume After Economic Reopening: Canada’s Two-Year Household Consumption Outlook
Business and Household Indicators
Canadian Economic Analysis
$225.00
- The acceleration of consumer spending toward the end of the first quarter was once again disrupted by COVID-19 restrictions during the third wave, which started in April.
- Real household consumption is expected to rebound by 5.7 per cent in 2021 and 2022, conditional on the lift of restrictions for tourism and recreation-related services later this year. Full recovery will be reached by the end of 2021.
- Services spending is expected to rebound strongly in the second half of 2021, supported by pent-up demand on services, better household finances, and expected restriction easing.
- Increasing mortgage debt might pose a risk for household finances and spending over the medium term, as housing prices will adjust downward in the future and interest rates will increase in 2023.
- Following the economic reopening, the household savings rate will drop from 14.5 per cent in 2020 to 9.3 per cent in 2021 as a result of government income support programs winding down and spending on services increasing.
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