Canadians predict recession for U.S.: survey

By Staff | July 12, 2012 | Last updated on July 12, 2012
2 min read

Canadians are optimistic about our country’s financial outlook, but are anxious about the poor performance and weak recovery of our Southern neighbours, says a BMO Harris Private Banking study.

Read: Canadian equities make a comeback

Almost three-quarters (72%) are worried global economic troubles will impact Canada’s relative prosperity and their portfolios, with 41% predicting the U.S. could slip into another recession.

Read: U.S. jobless rate falls despite weak April

Europe (23%), China and India (8%), and the Middle East (7%) all take a backseat to the U.S., considered the largest threat to our future growth.

“Though the most recent recession is a few years behind us, the tentative economic recovery in the United States still troubles Canadian investors,” said Paul Taylor, Chief Investment Officer of Fundamental Equities at BMO Asset Management, and investment strategist for BMO Harris Private Banking.

He adds, “Canada is the United States’ largest trading partner and it’s only natural we’ll be affected by what happens south of the border.”

Taylor says the annual value of Canada’s bilateral goods and services trade with the U.S. is approximately $600 billion.

Other key findings include:

  • The majority of Canadians (83%) are proud of Canada’s overall economic performance relative to the economies of the United States, Europe and other parts of the world
  • Three-quarters (74%) are optimistic about Canadian financial markets
  • Half of Canadians anticipate their current investments will grow in value over the next year

“While American equity markets have performed fairly well recently, there have been some mixed economic signals over the last year,” says Taylor.

Read: Canadians have better retirement prospects than Americans

“When combined with the ongoing sovereign debt crisis in the Eurozone and other trouble spots around the world, the time is right for Canadians to ensure they balance risk in their portfolios and avoid being overweighed in one specific geography,” he adds. staff


The staff of have been covering news for financial advisors since 1998.