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The economy in 2022

It’s not a secret anymore: from an economic standpoint, 2022 is going to be challenging! Here are a few high-level points on the economic outlook for 2022 and what to know in the short to medium term, according to a late-May 2022 webinar from one of our vendors (statements shared by experts during this webinar):
• We need to revisit asset classes
• Primary material costs are exploding
• There may be a recession in Europe due to inflationary pressures
• China’s economic activity is slowing down
• Experts are less concerned about the US : inflation is happening, but it’s not as worrisome.
• Our financial safety net is smaller than we think
• Certain areas of the world will suffer a little more, but for now, North America is doing well
• There may be a recession in Canada if we don’t stay disciplined
• Rebuilding inventory
• Low unemployment – lots of jobs. There is a major impact in terms of staffing shortages.
• Rates are set to rise in the coming months
• Commodity prices are hitting record highs
• Terms of Trade are driving investment
• Canada is experiencing internal inflationary pressures
• Canada’s income support policies have unfortunately hurt our current economy and have not helped curb inflation. Countries that have provided income support have been hurting more.
• Fiscal policies have fueled inflation
• The Bank of Canada’s fiscal policies are still too accommodating
• Neutral rates should be brought back
• Low-income households are more vulnerable to inflation

If you have questions or need more information about the economic outlook for 2022 and beyond, don’t hesitate to communicate with your financial advisor so you can be well-equipped for future financial decisions.