Skip to main content

Featured

5 Things to Know Today: Markets Near Records, Rates Hold, Oil Eases

  Here's what Canadian money watchers need to know as we head into the week: 1. TSX Hits Record Territory Amid Diplomatic Optimism The S&P/TSX Composite Index is hovering near 35,000 , approaching record levels as markets digest positive signals from U.S.-Iran negotiations. Senior officials say a deal to reopen the Strait of Hormuz could be signed at next week's G7 summit, easing geopolitical tensions and supporting oil-sensitive sectors. Financial stocks led gains—RBC, TD, and BMO all rose about 0.5–1%—while mining names like Agnico Eagle and WPM climbed despite softer gold prices. What it means for your wallet: A more stable geopolitical backdrop and lower oil prices could ease inflation concerns, improving conditions for your savings and investments. 2. Bank of Canada Holds Rates at 2.25% for Fifth Time On June 10, the BoC kept its benchmark overnight rate steady at 2.25% —marking five consecutive holds since October 2025. Governor Tiff Macklem cited a "two-directi...
Post a Comment
Read more

article

Labels

“Me-cession”: When the Economy Grows, but Households Struggle

 

In a peculiar economic moment, Canada finds itself in what some economists are calling a “me-cession.” While the country’s overall economy continues to grow, individual households are facing challenges that make it feel like a recession for many Canadians.

Traditionally, economists define a recession as two consecutive quarters of negative growth in real gross domestic product (GDP), often accompanied by rising unemployment. However, Canada has managed to avoid a technical recession, even though its growth has been sluggish. So, what exactly is this “me-cession”?

Understanding the “Me-cession”

  • Not Just Numbers: The term “me-cession” reflects the disconnect between macroeconomic indicators and the everyday experiences of Canadians. While GDP numbers may look positive, households are feeling the pinch.
  • Stagnant Wages: Despite economic growth, wages have remained stagnant for many workers. As costs of living rise, families find it harder to make ends meet.
  • Financial Stress: Polling data shows that 46% of Canadians are losing sleep over their finances. People are cutting back on dining out, delaying large purchases, and even putting off moving to cope with financial stress.
  • Consumer Behavior: Businesses report consumers paring back spending, and households express feeling stressed. This behavioral shift contributes to the “me-cession” sentiment.

In summary, the “me-cession” highlights the gap between economic statistics and the lived experiences of Canadians. While the economy stays afloat, many households struggle to get ahead. It’s a reminder that economic well-being isn’t just about national GDP; it’s about the financial health of individuals and families.


Labels:

Comments

Post a Comment