Economists have forecast a recession this year for Canada.
According to James Raymond, senior manager of research at the Vancouver Economic Commission, the GDP and economy are expected to decline for six months or more, but when it hits, the impact won』t be too painful for the city.
「There』s really tough times for people right now. Prices are obviously really high and people are suffering. That said, job vacancies remain really robust. Unemployment is low. House prices are pretty resilient. Retail sales, likewise. So, you know, things are looking pretty good right now. And we hope that Vancouver』s going to be a bit of an outlier and we can, you know, basically not suffer a really serious recession, even if, unfortunately, the rest of Canada might do so,」 Raymond explained.
Finances can also impact people』s mental and physical health, so if you』re stressed about an impending recession, one happiness researcher says do what people did during the pandemic. He suggests being more selfless, and by doing so, upping your happiness.
「People spent more time thinking about other people and looking after other people. There was a huge increase in the number of people who reported it all over the world that they reached out and helped strangers,」 said John Helliwell, editor, World Happiness Report.
Financially, Raymond says consumers would be smart to hold off on big purchases right now and try to pay off as much of their debt as possible to prepare for the recession, but some Vancouverites have their own ideas.
「Doing some extra savings. You know, me, myself, I』m not going out as much, I would say, as I normally would. So I think just like small changes here and there,」 one person said.
「Always have a rainy day fund. Just start saving. Don』t be scared of financial markets. It』s really important to stay invested at this point as well,」 said another.
「I think that during this period, you have to learn some new skills, become adaptive,」 another Vancouver resident added.
The Bank of Canada is set to hike its interest rate on Jan. 25, economists predict it will raise to 4.50 per cent, but Raymond says Vancouverites should not be alarmed.
「Vancouver remains a place where people want to live and work. We have investors who want to continue investing in our city and in our region. And we have, as I said, a very diverse economy. So we』re not relying on one single industry sector,」 said Raymond.
source:CityNews photo:Pixabay
