Will Spending Resume Post COVID?

Behavioural economists say that it depends onthe triggering of a number of psychological biases, especially the types of “accounts” in which consumers have allocated their savings

Yan Barcelo 9 April, 2021 | 1:45AM
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COVID Spending

Consumers worldwide and in Canada are sitting on unprecedented hoards of cash accumulated during the pandemic. According to a CIBC report published in November 2020, Canadian households and businesses were sitting on $170 billion of excess cash, $90 billion of that in consumer accounts, representing 4% of consumer spending.

This is in line with what’s happening elsewhere. Bloomberg Economics reports that globally, consumers saved close to US$3 trillion by the end of February 2021.

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About Author

Yan Barcelo  is a veteran financial and economic journalist with more than 30 years of experience, writing for many publications in Toronto and in Montreal, including CPA MagazineLes Affaires and Commerce.

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