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, download the Canadian Outlook Summary.
Canadian Outlook Economic Forecast: Household Consumption—August 2020
Canadian Outlook Economic Forecast: Household Consumption—August 2020
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- Household spending plummeted an estimated 51.3 per cent in the second quarter of 2020, following a 9.0 per cent drop in the first quarter.
- Weak consumer confidence amid uncertainty over employment and household finances will weigh on consumer spending on durables in the near term.
- COVID-19 will take a toll on tourism- and recreation-related services spending, further hurting household spending.
- High household debt levels and deteriorating labour market conditions will limit households’ ability to spend.
- Household spending habits shifted toward essential goods during the COVID-19 economic lockdown. Canadians have been holding off on their discretionary spending while increasing their budget for essential goods.
- In 2021, pent-up household demand, combined with the low-interest-rate environment, will support an 8.6 per cent bounce-back in household spending.
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