One more report about moderation…I wonder how Canadians feel about that.
Let’s add one more to the chorus, that for next couple years it will time to tighten our belts. TD Economics following up the Bank of Canada earlier in the week, and with the message that moderation and pairing back spending are the themes to their economic forecasts for the next couple years.
It’s same message that started with Carolyn Wilkins, Deputy Governor of the Bank of Canada last week, and that’s debt fuelled consumption has ran ahead of income growth and overall the pace of the Canadian economy. Frankly, for TD this trend isn’t sustainable.
One factor that kept up Canadian’s spending through this year was the Childcare Benefit check’s rolled out by the Trudeau government.
Another factor has been the rapid advance of home prices, but price gains forecasted to cool, and with the implantation of a foreign buyer’s tax in Vancouver and speculation for Toronto, they may be right this time.