The majority of affluent Canadians believe they are more financially secure now than they were before the 2008 recession, according to a new BMO Harris Private Banking study.
According to the study report, 54% of affluent Canadians who participated in the survey said are better off now than they were before September 2008.
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For BMO’s purposes, high-net worth is defined as Canadians with more than $1 million to play with in the market. Of those interviewed, only 11% said they were worse off today than in 2008. While 36% reported that their financial situation is unchanged.
The picture is slightly better for wealthy Americans, as 61% reported that they are doing better and only 7% said they are worse off than they were prior to the global economic crisis.
"High-net-worth Canadians clearly feel they have bounced back well from the 2008 downturn and are fairly upbeat about what the future has in store for Canada’s economy," said Alex Dousmanis-Curtis, senior vice president who heads up BMO Harris.
"However, we’re also hearing from many of our clients that they remain somewhat concerned about global market fluctuations and they want to … insulate their wealth as best as possible against a downturn," she added.
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By GlobalDataThe study also found that affluent Canadians returning to their pre-recession spending levels. They are currently spending more than, or the same as, they did prior to September 2008 in several key areas, including entertainment and leisure activities (89%), travel and vacations (86%), club memberships (78%), clothing and accessories (75%) and collections and hobbies (72%).
The study also revealed that almost half (47%) of high-net worth Canadians expect Canada’s economy to improve in 2013; meanwhile 61% are optimistic about what the future holds for the US economy. Nearly 55% said they expect to see gains in Asia and only 19% expect Europe’s financial situation to improve.
"Increased spending shows confidence in the economy and helps spur economic activity. We’re delighted to see such a high percentage of high-net worth Canadians opening up their wallets," Dousmanis-Curtis added.
