Recent research from Statistics Canada finds that Canadians’ household savings rate remains above pre-pandemic levels; but these savings are not evenly distributed. Lower-income households have been hardest hit by inflation, higher interest rates, and higher rents; however middle-income households, a group that typically does save at least a portion of their earnings, were also financially impacted.
Many Canadians struggled to save in 2023, as a result of stubborn inflation and high interest rates. For those who are investing, market volatility, two high-profile US bank failures in the space of days, and intensifying geopolitical uncertainty persuaded many to focus on safety and more conservative investments. The most recent Bank of Canada data shows continued gains for fixed-term products, particularly in accounts that are not tax-sheltered.
This week’s issue of Competitive Intelligence (CI) Update also reviews the year-end report from the Investment Funds Institute of Canada, looking at investing in mutual funds, ETFs, responsible investments, and alternative funds. The issue also provides an update on equity-sharing options for home buyers, a new ad from the FCAC, and links to some suggested additional reading.
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