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Savings support purchasing power in Canada

While Canada‘s government support programs have begun to wane, household purchasing power continues to be supported by large amounts of savings, the Royal Bank of Canada noted.

Although the unemployment rate remained above pre-pandemic levels at the end of 2021, labor markets have improved substantially since the start of the Covid-19 pandemic and this bank expects them to continue to improve through 2022.

Overall, while uncertainty remains regarding the Covid-19 pandemic, Royal Bank of Canada projects that the global economic recovery will continue in 2022, although this could vary or be uneven across different regions.

It also expects the Bank of Canada and other central banks to start raising interest rates in fiscal 2022.

Ongoing inflationary pressures have the potential to affect this bank’s results in fiscal 2022.

As such, Royal Bank of Canada will continue to pursue industry-leading volume growth, operational efficiency efforts and channel transformation to achieve its vision of being a digitally enabled relationship bank.

In the Caribbean, expect an economic recovery as travel and tourism continue to improve, supported by rising vaccination rates.

In addition, in his perspective, he considers that the continued fiscal stimulus and accommodative monetary conditions in some countries will boost consumer spending and alleviate unemployment.

Savings

Activity in Canada’s high-touch service sectors, such as restaurants and accommodation, improved over the past summer as provincial economies reopened, though travel-related industries remain depressed relative to pre-pandemic levels.

Meanwhile, the economy’s output of goods has been constrained by ongoing supply chain disruptions.

Consumer price growth has accelerated as the economy reopened, and higher business input costs driven by rising demand and supply chain disruptions threaten further increases above previous rates. to the pandemic until calendar 2022.

 

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