Staff
Towers Watson has released its 31st annual Canadian Survey of Economic Expectations—and it’s a gloomy outcast. The survey asked business economists, strategists and portfolio managers about their predictions regarding the economy, investments and governance issues, and found that continuing low interest rates, moderate inflation and lacklustre capital markets are on the horizon for 2012.
Among the survey highlights were the following:
- After a bumpy recovery in 2011, respondents predict modest but decelerated growth for the Canadian economy in 2012.
- Risk of sovereign debt default in the eurozone and the resulting impact on Canadian capital markets is a top concern for 2012.
- Lacklustre investment returns and low interest rates are expected to continue, adding to the funding challenge for many DB pension plans.