Canadians split on economy, but concerns rising, report finds

The Toronto financial district is seen in this file image. (Nathan Denette / THE CANADIAN PRESS)

More Canadians now fear the economy is doing badly compared to the last few years, according to a new survey of some of the world's richest countries.

The Pew Research Center asked Canadians how they would "describe the current economic situation" in the country, offering them the options of very good, somewhat good, somewhat bad or very bad.

Respondents split evenly, with 48 per cent saying they feel the situation is bad or very bad and 48 per cent saying it's good or very good (four per cent declined to answer). The negative sentiment is up from 39 per cent a year ago, when positive sentiment was at 57 per cent. The difference is even more stark compared to sentiment in the spring of 2013, when 32 per cent of those surveyed said the economic situation was bad or very bad, and 67 per cent said it was good or very good (one per cent declined to answer that year).

"Notably, though, this year marks the second time since Pew Research Center began polling in Canada in 2002 that the share of the public rating the economy positively has dropped below 50 [per cent]," senior researcher Margaret Vice wrote in her analysis. "In 2009, during the global financial crisis, only 43 [per cent] of Canadians said their economic situation was good."

The Pew Research Center conducted the study from April 4 to May 29, 2016.

The survey results suggest Canadians feel much better about their economy than many others, with survey respondents in the U.S., Japan, France and Italy feeling more negatively. The results suggest 54 per cent of Americans feel their economy is doing badly, while 47 per cent of those in the UK felt their economy was doing poorly at the time of the survey, which was conducted prior to the British referendum vote to leave the EU that caught many offguard.

Survey respondents in Greece felt by far the worst about their country's economy, with 97 per cent saying it's bad or very bad. In France and Spain, 86 per cent of respondents feel bad about their countries' economies. Respondents in Sweden, Germany and the Netherlands felt their countries' economies were doing better, at 76 per cent, 75 per cent and 61 per cent respectively.

Conservative finance critic Lisa Raitt said the survey completes a financial picture that seems to be increasingly grim, between increased unemployment, lower exports and a spike in bankruptcies in provinces that rely on the oil and gas sector. She says the Pew results reflect what she's heard in roundtables she's conducted across the country.

"They're gettng a little concerned. Whatever we saw in terms of business confidence is now translating into people's daily lives and they're lacking confidence in it," Raitt said.

"If you're worried about the future, if you're worried about your job, you're going to put some money aside.... You're going to do something other than spend it because you're trying to keep things tight."

Raitt urged the Liberal government to develop more free trade agreements and approve energy projects to spur business investment. She also said Finance Minister Bill Morneau must make his case to Canadians.

"If Canadian confidence is eroding, then he has to get out there and start talking about how the economy is going to improve. Not just 'we're hoping it will improve and we have faith in the middle class to spend our way out of it,' because the middle class is kind of giving that gut check to the government, saying 'we're worried about the national economy in general - what else are you going to do?'"

A spokesman for Finance Minister Bill Morneau said the Liberals are giving Canadians more money through tax cuts, Guaranteed Income Supplement top-ups and through the Canada Child Benefit. He said the 2016 federal budget forecasts 0.5 per cent growth this year and 1 per cent growth the next.

"The previous government presided over a period of weak growth not seen since the great depression," Dan Lauzon wrote in an email to CTV News. "We've also made historic investments in infrastructure, innovation and post-secondary education which will have a measurable impact on the economy at exactly the time when Canadians need it most."