"The whole country has collapsed"
Canada Day is just around the corner and the weekend is just around the corner, but not every Canadian is in a beautiful mood, especially with the recent economic reports.
According to the latest polls, 70% of Canadians now say that "the whole country has collapsed"!
A new report from pollster Ipsos Public Affairs found that Canadians aged 18 to 34 are the most pessimistic, with 78 per cent believing the country needs to improve.
CEO Darrell Bricker said people don't really feel like Canada is collapsing, but rather that the country system is "in tatters."
He said that his 35 years of working in public opinion surveying in Canada was the worst prospect he had ever seen, and that "right now, people feel that their efforts are not as successful as they should be." ”
Younger Canadians are more likely to feel that the country is not suitable for their own development than the older generation of Canadians.
In fact, Canada's recession is also reflected in the economy, and it is already causing concern.
近日，《金融时报》（Financial Post）甚至直接把加拿大列为“崩溃的国家”（breakdown countries）之首。
The so-called "collapsed countries" refer to countries that were once one of the world's 50 largest economies, but whose real per capita income growth rate has fallen sharply in the past decade, and their share of global GDP has declined.
Since 2020, Canada's per capita gross domestic product (GDP) has shrunk by 0.4% per year, the most severe among the world's top 50 advanced economies, with new investment and job growth largely driven by the government.
Today, Statistics Canada released its latest data report - GDP grew by 0.3% in April 2024! It is likely to slow to 0.1% in May.
The data showed that the growth in April was driven by a rebound in wholesale trade, mining, quarrying, and oil and gas extraction and manufacturing.
Retail was also the main driver of growth, led by food and beverage retailers and gas stations, which saw declines in March.
The figure is in line with economists' earlier forecasts, with BMO chief economist Doug Porter saying that, overall, Canada's economic growth in 2024 was slightly better than consensus expectations, but overall it was still lackluster.
"For the Bank of Canada, this hasn't changed much, as economic growth is still slightly below potential, which could mean a further rise in unemployment."
CIBC economist Andrew Grantham also said today that the monthly slowdown in May suggests a renewed acceleration in inflation in the same month.
Inflation rose to 2.9% in May, leading to lower expectations for the central bank to cut interest rates in July.
In addition, there is also data showing that the number of job vacancies in Canada has now decreased to 575,400, a 28% decrease from April 2023, which is the third consecutive decline in 2024, returning to pre-pandemic levels.
The continued decline in vacancies means that the labor market is tightening, with the number of unemployed per job rising from 2.2 in March to 2.3 in April.
"The decline in job openings suggests that businesses are slowing the pace of hiring, likely because of a slowing economy," said Charles St. Arnault, chief economist of Alberta.
The latest Labour Force Survey (LFS) from the Bureau of Statistics showed that the economy added 26,700 jobs in May, making a net increase of more than 190,000 jobs for the year.
However, the unemployment rate has risen steadily this year from 5.7% in January to 6.2% now.
By all indications, Canada's job market has failed to keep pace with the population surge.
Last year, Canada experienced record population growth, with a surge in new immigrants and an overall population increase of 1.3 million, the fastest annual growth rate since 1957.
The National Bank of Canada predicts a "population hangover" after the Justin Trudeau government announced cuts in the number of foreign temporary residents.
"Recognizing that the situation is becoming increasingly dangerous, the federal government recently decided that it was time to pause and allow the economy to digest the unprecedented wave of population growth of the past two years," analyzed Stéfane Marion, chief economist at the National Bank.
Not only that, but the latest report from the Canadian Society of Insolvency and Restructuring Professionals (CAIRP) shows that Canadians are experiencing an alarming level of bankruptcy not seen in years!
The latest data from the Official Receiver's Office (OSB) showed that the number of consumer bankruptcies increased by 11.3% in May compared to the same period last year, and the number of personal bankruptcy filings reached 12,195, the highest since October 2019.
This also means that, on average, 393 Canadians file for bankruptcy every day.
The president of CIRP, André Bolduc, said that despite the drop in interest rates in June, "the high cost of living and debt servicing costs continue to weigh on the budget".
In the 12 months to May 2024, the number of consumer bankruptcy filings in Canada increased by 17.9% compared to the same period last year
It is not only the number of personal bankruptcies that has risen dramatically, but also the number of businesses.
In May, a total of 530 companies in Canada declared bankruptcy, an increase of 41.7% over the same period last year, and the corporate bankruptcy rate increased by 67.6% this year, which is "just the tip of the iceberg".
In this regard, many Chinese Canadians also said-
"I don't know anything else, the middle class has collapsed anyway, the gap between the rich and the poor is getting wider and wider, and the days are getting poorer and poorer."
"Now Canada, chicken feathers."
"It's good to say that it didn't collapse, but if there is no way to make this country better, it's terrible."