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Cracks In Future For Canada Retirement Income

“Warning signs include declining private-sector pension coverage and the gradual erosion of Old Age Security’s income-replacement role, as benefits indexed to inflation fall behind wage growth.” C. D. Howe Institute
  • Canada’s retirement income system has generally served seniors well. Average income replacement rates remain high, poverty among seniors is low, and seniors’ median net worth has more than doubled in real terms since 1999.
  • But cracks are emerging. Public and private pensions now replace 10 percentage points less of pre-retirement income than two decades ago, low replacement rates are becoming more common among lower-middle earners, private-sector pension coverage is declining, and OAS is steadily losing ground as a source of income replacement.
  • The authors argue that Canada should rethink how the system delivers income replacement and poverty protection. They propose exploring a targeted “Canadian seniors benefit” combining OAS and GIS, shifting OAS’s income-replacement role to an expanded CPP/QPP, and strengthening employer-based retirement savings for workers without workplace pensions.

The authors wish to thank Xavier Dufour-Simard and Francois Laliberté-Auger for their assistance in carrying out some of the analyses contained in this paper. The authors also extend their gratitude to Sebastien Betermier, Colin Busby, David Dodge, Malcolm Hamilton, Sarah Hobbs, Abid Kazmi, Sébastien LaRochelle-Côté, Alexandre Laurin, Bernard Morency, James Pierlot, William B.P. Robson, Allan Shapira, Richard Shillington, John Stapleton, Michael Veall, and several anonymous referees for valuable comments and suggestions. The analyses contained in this paper were carried out at the Quebec Inter-university Centre for Social Statistics (QICSS), a member of the Canadian Research Data Centre Network (CRDCN). The activities of QICSS are made possible by the financial support of the Social Sciences and Humanities Research Council (SSHRC), the Canadian Institutes of Health Research (CIHR), the Canada Foundation for Innovation (CFI), Statistics Canada, the Fonds de recherche du Québec and all the Quebec universities that contribute to their funding. Conclusions, interpretations, and possible errors remain our own.

Introduction

Over the past decade, there has been little investigation into how seniors are faring with respect to the retirement system’s two key objectives: helping individuals sustain their standard of living in retirement (income replacement) and protecting them from financial hardship at older ages (poverty alleviation).

This stands in contrast to the rich policy discussion that led to the 2016 federal-provincial agreement to enhance the Canada (and Quebec) Pension Plan (CPP/QPP). Discussions focused on several major developments. The arrival of the first cohorts with full CPP/QPP earnings histories had helped lower poverty among seniors (Milligan 2008). Increased generosity in the Guaranteed Income Supplement (GIS) and CPP/QPP also contributed significantly to declining poverty rates (Schirle 2013). As Veall (2008) argued, the retirement income system was largely accomplishing its poverty alleviation objective. On income replacement, the debate leading to CPP/QPP enhancement made clear that overall rates were high in the population (LaRochelle-Côté et al. 2008; Ostrovsky and Schellenberg 2009). However, mid-earners without employer pension coverage were most at risk because public pensions offer relatively low replacement rates for them1Throughout, “public pensions” refers to the first two pillars of the system – OAS/GIS and CPP/QPP – and not to employer pension plans for public-sector workers, which belong, like private-sector plans, to the third pillar. (Ostrovsky and Schellenberg 2010). That extensive discussion took place less than two decades after another successful CPP/QPP reform took effect in 1998 (Little 2008).

Since the discussions leading to the 2016 agreement, much has occurred, including a pandemic, a surge in inflation, and significant financial market fluctuations. Although the CPP/QPP multi-decade expansion has been rolling out effectively, retirees have faced setbacks elsewhere. The continuing decline in defined benefit (DB) plan coverage in the private sector has turned off the “automatic pilot” for many workers’ retirement savings. Meanwhile, Old Age Security (OAS) and the GIS continue to protect against poverty despite the recent inflation surge because they are indexed to prices. But they are losing ground as sources of income replacement. Unlike CPP/QPP, whose benefits at retirement reflect wage growth over a worker’s career, OAS and GIS amounts are only indexed to prices and fall behind wage growth (see Box 1). Future retirees who rely heavily on OAS/GIS will therefore see lower replacement rates than today’s retirees. These trends suggest that Canada’s retirement income system risks falling behind.

Because of the importance of the retirement income system and the growing size of the senior population, public claims abound that seniors cannot make ends meet, live in poverty, or struggle with the cost of living. These sentiments are often behind proposals to further expand pension coverage and to increase benefits for older Canadians, such as OAS. There are also those advocating the opposite; namely, that retired babyboomers fare much better than prior generations of retirees and that, as a result, OAS should be curtailed for higher-income earners and left to play only a poverty alleviation role, potentially freeing up financial resources for other uses.

This Commentary, drawing heavily on Boisclair et al. (2025a), has two aims.

  • First, it investigates the financial outcomes of seniors over two decades (2002 to 2022), comparing their retirement incomes to prior earnings and taking a look at household balance sheet data. It finds that seniors have, on average, fared rather well financially, both in terms of flows (income/consumption) and of stocks (net wealth).
  • Second, the paper illustrates and acknowledges the changes in income composition and income replacement at older ages in recent decades – in particular, decreasing private sector pension coverage and a retreating role of the first pillar (OAS/GIS) of the retirement income system. It then discusses some options to reform the system and refocus it on its objectives.

Data Sources to Assess Seniors’ Financial Situation

To evaluate whether the retirement income system met its objectives in the past 20 years, we mainly rely on Statistics Canada’s Longitudinal Administrative Databank (LAD). The LAD offers detailed financial information derived from the tax records of 20 percent of the Canadian population. It allows us to obtain precise income measures at multiple points over a taxpayer’s lifetime and provides information on household composition. As a complement, we use Statistics Canada’s Survey of Financial Security for balance-sheet analysis. Both datasets are subject to substantial lags: LAD data are available through 2022 and SFS data through 2023. Readers should keep these lags in mind when interpreting our findings.

When inflation peaked in 2022, interest rates rose sharply, and housing prices fell from their peak in some major markets, while financial markets rose strongly. Because public pensions are indexed to prices, seniors’ income from OAS, GIS, and CPP/QPP was largely protected; financial and pension assets have generally grown; housing wealth, by contrast, may be somewhat overstated for owners in the most affected markets.

Poverty alleviation: With respect to poverty alleviation, we use key measures of poverty that can be constructed with tax data. As is clear from the literature, there is no single perfect measure of poverty (Government of Canada 2018). We mainly use the low-income cut-offs, after tax (LICO-AT) measure, created by Statistics Canada. The LICO-AT has not been updated since 1992 and relies on meeting expenditures on housing, food, and clothing but does not account for the growing share of expenditures on transportation and communications (Noël 2017).2 But it is easily computable from LAD data.

Income replacement: To evaluate the retirement income system in terms of income replacement, we calculate replacement with a measure of pre- and post-retirement income at some given ages. For this analysis, we define pre-retirement income as the average income in the age range 50 to 54, so as not to rely on a single year of income in the denominator of the replacement rate.3 We define the post-retirement window as the tax year in which the taxpayer turns 70.4

Income Replacement in Retirement

Family replacement rates (RR) on average are high, ranging from 80 percent to 90 percent (Figure 1).5 They increased by almost 10 percentage points (pp) between the 2002 and 2014 cohorts, before declining to roughly their levels at the beginning of the period. That hump-shaped pattern is mostly the result of changes in the denominator: pre-retirement earnings (at ages 50-54) declined slightly in real terms for cohorts turning 70 up to 2012, then rose by about 10 percent between the 2016 and 2022 cohorts (Boisclair et al. 2025a).

Retirement incomes, by contrast, increased steadily over the period. Including TFSA net withdrawals as income increases the RR by only 2 to 3 percentage points, with little effect on replacement rates, although this could change as TFSA use increases. Replacement rates are higher on an after-tax basis, since tax rates are lower at older ages due to several tax measures and to the progressivity of the income tax schedule.6

Figure 2 shows that despite similar gross replacement rates, individual incomes at age 70 have changed composition over the past decades.7 Public pensions, defined as the sum of OAS/GIS and CPP/QPP, are a very important source of income for seniors on average, but the share of pre-retirement income they replace has been declining from 31 percent of total pre-retirement income in 2002 to 27 percent in 2022. We observe a similar declining trend for private pension income (27 percent to 21 percent).8 What may seem surprising is that private pension income is declining for these cohorts, but changes to Registered Retirement Income Funds (RRIFs) over time could explain at least part of this phenomenon. Overall, public and private pension incomes have gone down from representing 58 percent of pre-retirement income to 48 percent, a drop of 10 percentage points in less than 20 years. This is a large drop coming from the three pillars of the retirement income system.

If the contribution of these sources to replacement is falling, what is keeping gross replacement rates constant? A closer look reveals that gross replacement rates do not decline accordingly because of an increase in several other income sources, notably employment (+6 pp), dividend (+3 pp), and RRSP (+1 pp; excluding RRIFs and RRSP-purchased annuities) income. Employment income at 70 is not concentrated among the better off: relative to pre-retirement income, it contributes more to replacement in lower deciles (14 pp in the third decile versus 9 pp in the eighth in 2022), although it forms a larger share of retirement income in the top decile (Boisclair et al. 2025a, Table 3).9 We also observe a decline in investment income (-3 pp), which could reflect the growing importance of tax-favoured savings vehicles (RRSPs and TFSAs) over time. One can conclude that there is more diversity in income sources at age 70 than there was 20 years ago and that traditional retirement income, coming from public and private pensions, has eroded substantially as a percentage of pre-retirement income.

Income Replacement Across Income Groups

Replacement rates from public pensions decline as income rises, a well-known feature of Canada’s retirement income system. To examine how this relationship is evolving, we divide the income distribution into cohort-specific deciles of pre-retirement after-tax income and compute the RR for each decile over time. The RR for the first decile hovers around 2 and is omitted to enhance readability (Figure 3). This means that someone in the first decile sees their real after-tax income double at age 70 relative to ages 50-54. Replacement rates are thus very high at the bottom of the income distribution.

The RRs generally decrease as pre-retirement income increases. At the very top (10th decile), the replacement rate remains above 60 percent. Because saving and dissaving outside registered accounts matters more at higher incomes, income replacement rates are a less reliable guide to consumption replacement in the upper deciles, and relatively low rates there are not necessarily a sign of inadequacy. Most deciles increase until 2014 to 2016, followed by a decrease of a similar magnitude. Deciles 2 and 3 exhibit no net variation from 2002 to 2022, whereas higher deciles have positive net variations, ranging from 3 percentage points (decile 4) to 6 percentage points (decile 7) over the entire period. The only decile that sees a net negative variation is the 10th (highest earners), whose RR drops by almost 6 percentage points over the period. The decrease for this decile again reflects faster growth in pre-retirement income from 2016 onward, suggesting that this group is faring increasingly well before retirement and is therefore of less concern from a retirement-income policy perspective.

Figure 4 illustrates the difference in gross RR magnitude between the ends of the income distribution. The graph shows how lower deciles depend on public pensions (OAS, GIS, and CPP/QPP), which replaced almost 80 percent of their gross income in the early 2010s. On the other hand, the upper deciles rely a lot more on private pensions (including RRIFs). We observe in the decile 3 that public pensions have not followed the increase in pre-retirement income, resulting in a decreased contribution to the gross RR by more than 19 percentage points over the 2013-2022 period (from 80 percent to 61 percent). This trend is much less pronounced for the 8th decile, where the decline is 2 percentage points (23 percent to 21 percent) over the same period. This suggests that the deteriorating income replacement function of the public pension system is disproportionately affecting lower-income taxpayers. Overall, this leaves the bottom of the distribution most vulnerable to the erosion of public pensions and the top to the retreat of Registered Pension Plans (RPP).

Averages also mask dispersion within deciles. The share of taxpayers with replacement rates below 60 percent – a level that is hard to reconcile with standard consumption-smoothing preferences – rose by 7 to 13 percentage points across cohorts in deciles 3 to 5, and up to a third of seniors below the median have low replacement rates (Boisclair et al. 2025a). Earlier work with the same data shows that low replacement rates are concentrated among middle earners without employer pension coverage (Ostrovsky and Schellenberg 2010).

Poverty Protection in Retirement

We find that the fraction of retired seniors below the LICO-AT is low (about 4 percent) and has remained very stable over cohorts, abstracting from the effect of the pandemic. The average depth, or shortfall, below the LICO over the period is also stable at around 18 percent (Figure 5). Thus, very few seniors fall below an absolute low-income threshold such as the LICO: Canada has been highly successful in protecting seniors from very low incomes. The same cannot be said for all Canadians, namely youth and working-age adults, however.

By comparison, in 2024, 5.4 percent of seniors lived below Canada’s official poverty line (the Market Basket Measure), compared with 11.5 percent of children and 12.6 percent of adults aged 18 to 64 (Statistics Canada, Table 11-10-0135-01). The dip in the low-income rate for 2020 is probably a reflection of larger transfers to households, such as the Canada Emergency Response Benefit (CERB). Overall, poverty rates are low among seniors because of the combined effect of OAS and GIS.10 In this light, it is notable that so much of the policy discussion revolves around poverty alleviation, when the erosion of the income replacement role of OAS is well underway and should be a cause for concern.

The Balance Sheet of Seniors

Income flows can be different from spending flows. When income flows include withdrawals from RRSPs and TFSAs, one also captures spending coming from the decumulation of these accounts (unless these monies are then transferred to taxable savings or to another investment use). This is therefore a good proxy, as argued above, but this will not include decumulation from other accounts and, more generally, consumption out of wealth. This can be important since a wealthy individual or household with a modest income may be better off financially, and spend more, than a counterpart with a high income but no wealth.

The most comprehensive source of data currently available on wealth holdings is Statistics Canada’s cross-sectional Survey of Financial Security (SFS).11 Since this is not longitudinal data, Table 1 shows cross-sectional statistics over time in constant 2023 dollars for households aged 65 and older. Specifically, the table reports both the proportion of households holding various types of assets and debts as well as the median value among households with positive balances. Median total assets and median net worth are also included and are calculated across all senior households, including those with zero or negative net worth. Conditional medians for individual assets cannot be added up to obtain the totals.

The median household net worth (assets minus debt) of those age 65+ has risen from $503,600 in 1999 to $1.1 million in 2023, or by 120 percent. This doubling over 24 years is a significant increase in the potential living standards of seniors. Of course, there is considerable dispersion, but the median senior household has a very high net worth. The share of seniors with RRSP assets rose from 57.8 percent to 72.7 percent, while the median value of those assets increased substantially, by more than 77 percent in real terms. TFSAs were introduced in 2009, and by 2023, 65 percent of households with at least one member aged 65 or older held TFSA assets, with a median value of $60,000. Importantly, while the share of households with RPP assets increased slightly over the period, the median value of those assets increased by 32 percent on average. Overall, traditional retirement savings, through pension plans and tax-favoured saving vehicles, increased substantially over time. Principal residences, held by 83 percent of senior households, also increased substantially in value: the median value among homeowners rose by 136 percent in constant dollars.12

Median debt increased as well by 136.7 percent over the period. But since debt is low relative to assets, its evolution does not significantly impact net worth. A few interesting changes occurred – for example, lines of credit, in particular home equity lines of credit, have more than doubled in prevalence and in median value – but traditional mortgage debt still accounted for the lion’s share of senior debt in 2023. Over the period, the share of households with mortgage debt nearly doubled to one in five (20 percent); households may have been able to borrow more on account of larger assets and rising income, but also lower interest rates (Bédard and Michaud 2021).

On average, seniors now have much higher net worth and financial equity, from which to finance consumption in retirement if they wish to do so. Even though counting home equity probably overstates the increase in net consumption opportunities coming from wealth, the overall portrait is quite positive for many in terms of non-government savings for retirement. However, this may not be available to some who have very few assets (Baldwin 2022). Notably, there is an important divide between homeowners and renters. The divide is stark: among families whose main earner was 55 to 64 in 2023, homeowners with an employer pension had a median net worth of $1.4 million, compared with $11,900 for renters without one (Statistics Canada 2024). Household type matters as well: seniors living alone, many of them widowed, had a median net worth of $475,900 in 2023, less than half that of senior families. Further complicating the interpretation of wealth differences is the increase in the average length of the retirement period, implying that one needs more financial wealth to sustain a given regular flow of consumption expenditures in retirement.

The Policy Challenges Ahead

To summarize the findings for policy, we must first note that the bottom income deciles rely on the public system (OAS, GIS, and CPP/QPP), while above the median, RPPs and other private retirement savings account for a much larger share. Hence, two issues warrant attention: 1) the future evolution of public pensions and its impact on the bottom deciles (and, perhaps less importantly, higher deciles due to CPP/QPP enhancement); and 2) the evolution of RPPs and other retirement savings arrangements and their impact on the replacement rates of individuals above the median. We discuss each in turn.

The Eroding Income-Replacement Role of OAS/GIS

With price indexation instead of wage indexation, the income replacement role of OAS/GIS has been slowly eroding, as indicated by Figure 2 – especially so for lower deciles, as shown in Figure 4. The 10 percent increase in OAS for those aged 75 and over introduced in 2022 partly offset this erosion for older seniors, but did not change the underlying indexation mechanism. And without further intervention, this will continue in the future, reducing OAS’s income replacement value by more than 22 percent over 20 years if real wage growth is 1 percent above inflation. The CPP/QPP expansion already underway will barely offset this decline in aggregate – roughly offsetting it for workers with earnings close to the Year’s Maximum Pensionable Earnings (YMPE), but not for lower earners, whose gains are smaller and partly clawed back through the GIS, while higher earners see a net gain (Boisclair et al. 2025a).

There are several possible options to adapt OAS, including a few known proposals. One would see OAS increase in generosity; another would see it curtailed; and a third would see it reshaped entirely. We review these proposals below as potential options or starting points for further policy discussions.

Option 1: Expand OAS for Those Aged 65-74

This idea was originally put forward in 2021 in a private member’s bill, Bill C-319, which died when the previous Parliament was dissolved. The content of the bill has moved to Bill C-261, which was first read in Parliament on February 9, 2026.13 A 2022 enhancement increased OAS by 10 percent for Canadians aged 75 and over; the current proposal would extend the same increase to Canadians aged 65-74.

We do not think this is the right approach for two reasons. First, an across-the-board increase is poorly targeted: poverty among seniors is now low relative to other age groups, and most of the cost would go to seniors who are not at risk of poverty. Second, it would not solve the underlying problem: a one-time increase restores some income replacement today, but with price indexation the erosion simply resumes, inviting further ad hoc increases. Relying on such raises on top of legislated inflation indexing leaves this important program – perhaps more than others due to its size and salience, as well as its single-government nature – at the mercy of political and public finance pressures.

Option 2: Start OAS Clawbacks at $100,000 of Family Income

A proposal from Generation Squeeze would cut OAS for better-off seniors – effectively lowering the clawback threshold by combining family incomes rather than treating them individually and/or increasing the rate compared to the current situation.14 Using the “family income” concept, contrary to individual income, which is currently the case for OAS clawback, would ensure that single or widowed individuals are not disadvantaged (the current 15 percent clawback starts at an individual income of $93,454 in 2025).

We share the premise of this proposal: any reform that refocuses OAS will, and should, ask more of better-off seniors. Our concern is rather with its design. While this would ease financial pressures on the program while protecting the poverty alleviation function for lower-income seniors, we believe this would come down to turning OAS into a “taxable GIS.” Indeed, the GIS’s very function is to ensure that seniors with little or no income other than OAS are lifted to just above some low-income threshold. It is unclear to us that duplicating this function is the best way forward. While a family-income test avoids disadvantaging single or widowed seniors, it would also end the individual character of OAS. Since its introduction as a universal benefit in 1952, OAS has provided lower-earning spouses – mostly women – with an independent source of income and could discourage couple formation later in life. Moreover, this proposal in itself is incomplete, as it does not address the erosion of income replacement above the median.

Option 3: Create a Canadian Seniors Benefit and Expand CPP/QPP

This proposal was made by one author of this paper in the Financial Post in late 2024 and in L’actualité.15 It would combine OAS and GIS – the OAS supplement – into a more streamlined “Canadian seniors benefit,” aimed solely at poverty alleviation, while only using CPP/QPP to achieve income replacement objectives. Canada has taken a similar approach elsewhere, for example with the Canada child benefit (CCB). This option has two distinct components: (a) replacing OAS and GIS with a targeted, federally funded “Canadian seniors benefit”; and (b) expanding CPP/QPP benefits, financed by higher contributions from workers and employers, to take over the income replacement function currently played by OAS. The two components fall under different jurisdictions – the first is federal, while the second requires federal-provincial agreement – but they are designed to go together: implementing the first without the second would amount to a cut in retirement income for middle-income workers.

More specifically, the idea consists in closing OAS as it currently exists, stripping it of its income replacement function – which has been in constant decline in recent and future decades – and moving its poverty alleviation function to an expanded GIS. The latter, which would become a targeted “Canadian seniors benefit,” would ensure that all seniors have an income at least equal to the low-income threshold. This is similar to what OAS and GIS currently accomplish together for lower-income seniors.

Consider an illustrative design for a single senior. The new benefit could guarantee the current combined maximum of OAS and GIS – about $22,800 a year in late 2026 – and be reduced by 40 cents for each dollar of other income. It would then be fully phased out at about $57,000 of other income between the current GIS cut-off ($23,112) and the OAS recovery threshold ($93,454). The reduction rate would thus be higher than the 15 percent OAS recovery tax but lower than the 50 percent to 75 percent GIS reduction rates, which would also improve work and saving incentives for low-income seniors. An earnings exemption similar to the current GIS one should also be preserved. Parameters for couples would need to be set separately. The first pillar would thus become a pure anti-poverty transfer program.

Such a redesign would have important distributional consequences, which hinge on a key difference between the two programs: OAS and GIS benefits depend on residence and current income, whereas CPP/QPP benefits depend on lifetime earnings. Keeping the new benefit tied to residence and current income is what protects seniors with low incomes, whatever their work history – including many with interrupted employment histories, caregivers, persons with disabilities, low lifetime earners, and immigrants with incomplete Canadian residence – since it would guarantee an income at least equal to the low-income threshold. By contrast, the income replacement function moved to CPP/QPP would accrue in proportion to lifetime earnings. Seniors whose current income places them above the range of the new benefit, but whose lifetime earnings were modest, would therefore lose OAS without an equivalent CPP/QPP gain. This is notably the case of lower-earning spouses in middle-income couples, often women, for whom OAS is currently an individual source of income; income testing on a family basis would remove it, unless the design preserves some individual entitlement.16

In any case, substantial savings would ensue for the federal government since OAS payments (excluding GIS) are planned to total nearly $68 billion in 2026/27. The actual size of the savings will depend on the specific parameter values for the redesigned “Canadian seniors benefit” and on the transition (see below), but would eventually amount to tens of billions of dollars a year. Then, a parallel increase in contributions would enhance CPP/QPP benefits to take over the income-replacement function of OAS. As a purely illustrative order of magnitude, replacing the maximum OAS pension for a worker with career earnings at the YMPE would require about 3 percentage points of additional contributions, split between employees and employers, on a fully funded basis.17This would effectively move the income replacement function of OAS “off-budget,” within a plan with strong governance, and bring it together with the rest of earnings-related income replacement in CPP/QPP. How this expansion is financed matters as much as its size. A fully funded expansion, like the one introduced in 2019, is fair across generations but takes about 40 years to mature, which, if OAS were closed at the same time, would leave middle-income workers retiring in the interim with neither OAS nor much additional CPP/QPP. A partially funded (pay-as-you-go) component would allow benefits to be paid sooner at the cost of transfers from future contributors.

Transition is the main challenge. Many workers have planned their retirement around OAS, and closing it abruptly would impose large and unforeseen losses on those who have already retired or are close to retirement – a retiree with $41,000 in income from a defined benefit pension and full CPP would lose about 15 percent of income – while a fully funded CPP/QPP enhancement would take decades to mature. The two must therefore move in step: OAS would remain in place for current retirees and cohorts close to retirement and be phased out gradually for younger cohorts as their CPP/QPP entitlements build up, with long advance notice. The CPP/QPP phase-in could also be accelerated, through two sources that can be combined: drawing on part of the assets accumulated in the base CPP and QPP and using part of the federal savings from closing OAS, for instance, to finance a partially pay-as-you-go component. Both involve transfers across generations to be weighed against the higher contributions they would imply later, and the latter would make federal savings correspondingly smaller in the short run. Beyond the transition, governments could decide whether to use the savings to lower taxes, reduce debt, or fund other priorities.

Clearly, such a major change would require careful and demanding coordination between the federal and provincial governments, at least with respect to the CPP/QPP part. Although such coordination is always a challenge in Canada, it is not unheard of. This is evidenced by the two important rounds of changes to CPP achieved in the past 30 years: in particular, the 1998 reform and the 2016 agreement to enhance the CPP; and by the contribution rate cuts announced in the federal Spring Economic Update.18 Cancelling those rate cuts could indeed be part of a broader remodelling under this option.

The Retreat of Private-Sector Pension Coverage

The landscape is changing rapidly for RPPs. Coverage in the private sector has eroded from an already low level, despite high hopes when Canada’s retirement system was established: 35 percent of private sector workers were covered in 1980, compared with fewer than one in four today (Boisclair et al. 2025a) – and only about 17 percent of core-age private-sector workers after correcting for double counting in official statistics (Dostie and Morris 2025). The quality of coverage has declined as well: in 1980, 90 percent of covered private-sector workers had a defined benefit plan, compared with 41 percent in 2023, so that fewer than one in 10 private-sector workers now has access to a DB pension (Boisclair et al. 2025a).19 As discussed, this is particularly concerning for above-median earners.

Although the primary goal of the CPP/QPP expansion currently underway was to cover workers without RPPs, this may translate into higher replacement rates for those with DB RPP coverage. Indeed, many public sector DB plans do have a so-called “integrated” structure with CPP/QPP20 – but it is too early to tell how many DB plans will have accounted for the CPP/QPP enhancement in the medium- to long-term.

However, middle- and higher-income earners without pension coverage have long been the group most at risk of inadequate income replacement. While solutions may exist to increase pension or retirement savings coverage for this target group, most are difficult or costly to implement or politically unpopular. For instance, a recent proposal in a C.D. Howe Institute Commentary (Ambachtsheer and Mazer 2026) suggests subsidizing small businesses to offer employee pensions. While this may help since cost is often a major concern for employers considering a pension plan, administrative burdens remain, and the subsidy could provide windfall gains to employers that would have offered a plan anyway. Furthermore, the very low take-up of Pooled Registered Pension Plans (PRPPs) illustrates that a stronger approach is required.

Quebec’s approach under its law on Voluntary Retirement Savings Plans (VRSPs), which requires employers to offer a basic savings plan with auto-enrolment, seems to be going in the right direction. Indeed, we have recently found that the law has resulted in increased savings in VRSPs but also in RRSPs and TFSAs (Boisclair et al. 2025b). However, enforcement is currently limited, and employer contributions remain voluntary, hampering more significant progress. Moreover, all workers are enrolled in the plans, even lower-income workers who might not benefit much or for whom an RRSP-type plan might even reduce future GIS benefits. In its most recent budget, the Quebec government has announced that it would study options to strengthen VRSPs, including a possible public VRSP managed by an independent organization, similar to the National Employment Savings Trust (NEST) in the UK.

If we are to address the income replacement gap for the target group, strengthening employer-based solutions will be needed to avoid an even larger CPP/QPP expansion than the one already underway and the one following the folding of OAS, based on option 3 above.

Conclusion

The evidence presented in this paper and elsewhere suggests that, on average, Canadian seniors have fared relatively well in recent decades and that the retirement income system has so far met its objectives in aggregate, both in overall income replacement and poverty protection. While some seniors continue to face hardship, this conclusion may surprise many and contrasts with the broader narrative of widespread financial difficulty among seniors.

Against this backdrop, the evidence also points to weaknesses that are already visible and likely to deepen:

  • public and private pensions now replace 10 percentage points less of pre-retirement income than they did two decades ago;
  • low income-replacement rates are becoming more frequent among lower-middle earners;
  • private-sector RPP coverage keeps declining; and
  • the income replacement function of OAS continues to erode and is not fully offset by the CPP/QPP expansion underway.

To date, other income sources – notably employment – have filled the gap, but they cannot be relied upon in the same way as pensions. One way forward, which we do not favour, would be to keep adjusting OAS on an ad hoc basis. Or Canada could, as we suggest, reshape OAS by folding its limited income replacement function into the CPP/QPP and merging the rest with GIS to create a “Canadian seniors benefit” that focuses solely on poverty reduction.

For income replacement above the median, private-sector RPPs and other employer-sponsored retirement savings arrangements could help bridge the growing gap, given their apparent value to workers (Dostie and Morris 2025). The enhanced CPP/QPP may also prove sufficient for this group following the current expansion and any changes that may come with the remodelling of OAS/GIS. If not, Canada could complement this approach with an “improved VRSP-like” system in which employers are encouraged or mandated to play a stronger role – as was always intended in the design of Canada’s retirement income system – or expand CPP/QPP even further still, this time above a certain level of earnings. In all scenarios, it is time to revisit Canada’s retirement income system.

For the Silo, Pierre-Carl Michaud and David Boisclair.

References

Ambachtsheer, K., and A. Mazer. 2026. Spreading the Benefits: A Targeted Tax Credit Is Needed to Expand Retirement Plan Coverage in Canada’s Private Sector. Commentary 704. Toronto: C.D. Howe Institute. https://cdhowe.org/publication/spreading-the-benefits-a-targeted-tax-credit-is-needed-to-expand-retirement-plan-coverage-in-canadas-private-sector/.

Baldwin, B. 2022. “The Evolving Wealth of Canadians: Who Is Better Fixed for Retirement? Who Is Not?” E-Brief. Toronto: C.D. Howe Institute. https://cdhowe.org/publication/evolving-wealth-canadians-who-better-fixed-retirement-who-not/.

Bédard, N., and P.-C. Michaud. 2021. “Playing with Fire? Household Debt near Retirement in Canada.” Canadian Public Policy / Analyse de politiques 47(1): 56–71. https://www.jstor.org/stable/27034142.

Boisclair, D., X. Dufour-Simard, and P.-C. Michaud. 2025a. “Retirement Incomes in Canada: Past, Present and Future.” Retirement and Savings Institute (RSI) Working Paper 19. September. https://ire.hec.ca/en/19-retirement-incomes-in-canada-past-present-and-future/.

______________. “La Loi RVER a-t-elle augmenté l’épargne des travailleurs au Québec?” Jacques-Parizeau Research Chair in Economic Policy Working Paper 5. October. https://cjp.hec.ca/en/5-la-loi-rver-a-t-elle-augmente-lepargne-des-travailleurs-au-quebec/.

Dostie, B., and T. Morris. 2025. “The Labour Market Impacts of Employer-Pension Plans.” Retirement and Savings Institute (RSI) Working Paper 18. August. https://ire.hec.ca/en/18-the-labour-market-impacts-of-employer-pension-plans/.

Financial Services Regulatory Authority of Ontario (FSRA). 2026. “Workplace Pension Membership Increases in Ontario, but Many Could Benefit from Additional Planning Steps.” News release. March. https://www.fsrao.ca/announcements/workplace-pension-membership-increases-ontario-many-could-benefit-additional-planning-steps.

Government of Canada. 2018. Canadian Poverty Reduction Strategy: What We Heard about Poverty So Far. Ottawa: Employment and Social Development Canada. https://www.canada.ca/en/employment-social-development/programs/poverty-reduction/reports/what-we-heard.html.

LaRochelle-Côté, S., J. Myles, and G. Picot. 2008. Income Security and Stability during Retirement in Canada. Analytical Studies Branch Research Paper Series 306. Statistics Canada.

Little, Bruce. 2008. Fixing the Future: How Canada’s Usually Fractious Governments Worked Together to Rescue the Canada Pension Plan. Toronto: University of Toronto Press. October.

Milligan, K. 2008. “The Evolution of Elderly Poverty in Canada.” Canadian Public Policy / Analyse de politiques 34(Supplement 1): S79–S94. https://doi.org/10.3138/CPP.34.4.S79.

Noël, Alain. 2017. “How Do We Measure Poverty?” Policy Options. November 9. https://policyoptions.irpp.org/2017/11/how-do-we-measure-poverty/.

Ostrovsky, Y., and G. Schellenberg. 2009. Pension Coverage, Retirement Status, and Earnings Replacement Rates among a Cohort of Canadian Seniors. Analytical Studies Branch Research Paper Series 321. Statistics Canada. https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M2009321.

______________. 2010. A Note on Pension Coverage and Earnings Replacement Rates of Retired Men: A Closer Look at Distributions.

Schirle, T. 2013. “Senior Poverty in Canada: A Decomposition Analysis.” Canadian Public Policy / Analyse de politiques 39(4): 517–540. https://doi.org/10.3138/CPP.39.4.517.

Statistics Canada. 2024. “Survey of Financial Security, 2023.” The Daily. October 29. https://www150.statcan.gc.ca/n1/daily-quotidien/241029/dq241029a-eng.htm.

Veall, M. R. 2008. “Canadian Seniors and the Low Income Measure.” Canadian Public Policy / Analyse de politiques 34(Supplement 1): S47–S58. https://doi.org/10.3138/CPP.34.SUPPLEMENT.S47.

Wolfson, M. 2011. Projecting the Adequacy of Canadians’ Retirement Incomes. Institute for Research on Public Policy. https://irpp.org/research-studies/projecting-the-adequacy-of-canadians-retirement-incomes/.

Trade and Financial Fragmentation Spreads Beyond Rivals as Costs Mount

  • Fragmentation is already costing the global economy $213–$307 billion annually, while adding 0.2–0.3 percentage points to global inflation.
  • Fragmentation is spreading beyond geopolitical rivals to traditionally allied economies, including the EU, Canada, Japan and South Korea.
  • Emerging markets are likely to be hit the hardest by these shocks as countries outside the major geopolitical blocs face an estimated 10.7% hit to GDP growth versus 6.4% globally, even as regional initiatives offer new solutions.
  • Read the full report and learn about the initiative. Learn more about the Annual Meeting of the New Champions 2026 here. Follow on social media using #amnc26, #2026夏季达沃斯#.

New York, USA, June 2026 – Geoeconomic fragmentation imposing an annual cost of $213–$307 billion usd/ $296- $426 billion cad on the global economy, according to a new World Economic Forum report release today. Driven by geopolitical tensions, economic security concerns and shifting trade relationships across major economies, fragmentation accelerated through 2025 and 2026 and is increasingly affecting trade, finance and investment systems.

Deepening Divides: The Cost of a More Fragmented Financial System — published in collaboration with Oliver Wyman, a Marsh business, and the second in the Forum’s fragmentation series — finds that these pressures are playing out through escalating tariffs, investment restrictions and retaliatory measures.


The report finds  that the growing use of economic statecraft in 2025 and 2026  marked a turning point for global trade and finance. While the first report focused primarily on fragmentation risks between geopolitical rivals, the latest findings suggest a broader structural shift is underway. Tariffs and investment restrictions are increasingly affecting traditionally aligned economies, including the US, the EU, Canada, Japan and South Korea, raising costs for businesses and increasing uncertainty for cross-border trade and investment.

“The global financial system has faced increasing pressures from geopolitical and economic fragmentation,” says Matthew Blake, Managing Director and Head of the Centre for Financial and Monetary Systems World Economic Forum. “Despite these pressures, the financial system has remained resilient. Markets have continued to provide real-time feedback on evolving policies while policy-makers have generally avoided actions that could erode confidence in the international financial system. As fragmentation persists, preserving the trust and stability that underpin global finance will be critical to supporting long-term growth and prosperity.” 

The economic costs are rising
As fragmentation becomes more embedded across markets and financial systems and barriers rise even among allies, the risks of escalation and long-term economic disruption increase. If current trends accelerate into more severe fragmentation scenarios, global losses could reach as much as $6.9 trillion usd, or 6.4% of global GDP, according to the report’s modelling, an economic impact larger than every economy in the world except the US and China.

Ultimately, fragmentation impacts both businesses and households. Current fragmentation policies are estimated to add 0.2–0.3 percentage points to global inflation, eroding purchasing power across most economies. The sharpest real wage impacts are seen in the United States, where real wages are estimated to be 0.33% lower for low-skilled workers, 0.49% lower for medium-skilled workers and 0.66% lower for high-skilled workers, with similar purchasing-power pressures visible in other major economies.

“In conversations with business leaders around the world, the message is remarkably consistent: What businesses need most right now is predictability, and they are not getting it,” says Daniel Tannebaum, Partner and Global Leader, Anti-Financial Crime Practice, Oliver Wyman, a Marsh business. “Without clearer guardrails around tariffs, sanctions and other economic measures, the risks to investment, growth and financial stability will continue to mount.”

Emerging markets face the sharpest exposure
Emerging markets and developing economies (EMDEs) are likely to be the hardest hit by the impacts of growing financial fragmentation. In the most extreme fragmentation scenario, countries outside the major geopolitical blocs, most of which are EMDEs, could face output losses of 10.7%, compared to a global decline of 6.4%.

Structural factors like shallower capital markets make EMDEs more dependent on international capital flows and more vulnerable to the negative impacts of a less integrated financial system.

Africa exemplifies both the risks and potential resilience pathways. The continent’s exposure to external capital flows means a more fragmented system would make development financing more expensive and less predictable. At the same time, regional integration – through initiatives like the African Continental Free Trade Area (AfCFTA) and payment systems such as Pan-African Payment and Settlement System (PAPSS) – offers pathways to build resilience in Africa, which also stands to benefit from such secular trends as population growth and an abundance of critical raw materials.

While fragmentation is unlikely to reverse in the near term, it can be managed. The report identifies five actions policy-makers can take to mitigate fragmentation:

Policymakers can limit the damage

  • Establish shared guardrails to protect the financial system from fragmentation, emphasizing principles like safeguarding the rule of law and independent monetary policy, limiting the seizure of sovereign assets, and protecting the integrity of government data.
  • Align on rules to guide the use of economic statecraft policies that advance national security and resilience objectives without undermining global growth.
  • Ensure policy predictability to sustain investment flows and allow for the continued functioning of cross-border capital and financial markets.
  • Maintain interoperability across payment and digital currency systems and prepare businesses for a more fragmented geoeconomic operating environment.
  • Advance regional integration initiatives such as the AfCFTA and PAPSSP, as well as support the development of domestic and regional capital markets, including the European Savings and Investments Union. 

Together, these measures can help preserve financial stability and resilience even as the global economy becomes more fragmented.

Report methodology


The report updates the Forum’s 2025 fragmentation analysis to reflect policy and market developments across 2025 and early 2026. Its quantitative modelling estimates the economic impact of current trade and financial policies and examines multiple escalation scenarios across output, inflation, trade flows and wages.

The analysis also incorporates updated assumptions on tariffs, countermeasures, pass-through rates and restrictions on services trade, alongside qualitative insights from business leaders, policy-makers and financial-sector experts, including regional perspectives from Africa.

About the Annual Meeting of the New Champions 2026


The 17th Annual Meeting of the New Champions will take place from 23 to 25 June 2026 in Dalian, People’s Republic of China, under the theme “Innovating at Scale”. The meeting will bring together 1,500 cross-sector leaders to explore how innovation and emerging technologies can unlock new growth models and drive positive economic momentum in a fast-shifting global landscape.

For the Silo, Jarrod Barker.

Vehicle Millennials Once Mocked Makes Major Comeback

Millennials are abandoning SUVs for the one vehicle they swore they’d never drive: the minivan.

For years, North Americans were told bigger was better. Three-row SUVs became the default family vehicle, and automakers poured billions into the category. Consumers followed in droves. But now a surprising reversal is underway. The same generation that spent decades mocking minivans is increasingly choosing them over SUVs, and experts say the shift reveals something much larger about the state of the North American consumer in 2026.

Faced with persistent affordability pressures, elevated borrowing costs, expensive insurance premiums, and rising household debt, many families are abandoning image-driven vehicle purchases in favor of practicality, value, and long-term cost savings. The result? The minivan is making an unexpected comeback!

Why Minivans Are Growing Again
ce van 2.png

The growth comes after decades of decline and signals a notable shift in consumer priorities. Industry analysts cite several major factors:

  • Better cargo space than most three-row SUVs.
  • Easier third-row access.
  • Sliding doors favored by parents.
  • Better fuel economy versus large SUVs.
  • Lower purchase prices compared to similarly equipped SUVs.
  • Strong hybrid offerings from Toyota and Kia.
  • Rising affordability concerns among younger families.

What makes this trend especially compelling is who is driving it. Millennials, many of whom grew up riding in minivans and spent years rejecting them as uncool, are now among the key buyers fueling the segment’s resurgence. As the oldest members of Generation Alpha enter their school-age years and family transportation needs evolve, functionality is increasingly outweighing perception.

Costly SUVs Are Pricing Out Families
SUV prices have steadily climbed since 2021, with three-row options outpacing overall car price inflation. As once-mainstream options like the Suburban and Expedition become more associated with luxury pricing, families looking to pack into a single vehicle have turned to minivans like the Chrysler Pacifica, Toyota Sienna, and Kia Carnival.

Kia Carnival with impressive seating capacity.

The rise of hybrid minivans has also changed the minivan’s reputation from gas guzzler to economical, Earth-friendly choice. Toyota’s hybrid Sienna is also available with all-wheel drive, a combination northern families would have once only dreamed of. For 2026, the hybrid Toyota Sienna gets up to 36 miles per gallon. Ten years ago, the Sienna was good for just 21 miles per gallon. Times are changing! Anyone want to talk about advanced style and design- look back over 30 years ago to the Previa.

The economics are difficult to ignore. Many popular minivans offer significantly more usable passenger and cargo space than comparably priced SUVs, often while delivering better fuel economy and a lower purchase price. For families already grappling with inflation and high monthly expenses, the savings can add up to thousands of dollars annually.

Automotive retail analysts and consumer advocates Zach and Ray Shefska at http://www.caredge.com/ emphasize the following factors:

  • Millennials Are Suddenly Embracing Minivans
  • This Trend Reveals About America’s Financial Reality in 2026
  • SUVs Are Becoming the New Status Symbol Consumers Can No Longer Afford
  • Minivans Deliver the Best Value for Families Today
  • Cargo Space, Insurance Costs, and Fuel Economy Matter More Than Ever
  • Is This a Temporary Shift or the Beginning of a Long-Term Consumer Reset?
  • Rising Household Costs Are Changing Vehicle Buying Decisions
  • The Minivan IS the Family Vehicle North Americans Are Reconsidering in Record Numbers



The minivan story is not really about minivans. It is about a generation confronting economic reality and making purchasing decisions based on value instead of image. The comeback of the vehicle many Millennials once swore they would never own may be one of the clearest indicators yet of how dramatically the North American consumer is changing.

For the Silo, Karen Hayhurst.

Global Inflation Pushes Millions of Vulnerable Families Deeper Into Hunger and Economic Crisis

Life for Relief and Development calls for increased global support as rising living costs and food insecurity intensify humanitarian needs worldwide

World’s Most Vulnerable Is An Increasing Demographic

As the costs of food, fuel, housing, healthcare, and necessities continue to climb across the globe. Humanitarian organizations are warning that the world’s most vulnerable populations are facing increasingly devastating consequences. In 2024, more than 295 million people across 53 countries experienced acute hunger, marking the sixth consecutive year global food insecurity has worsened. That number has since risen to 343 million. Families already living in poverty are now being pushed further into crisis, forced to make impossible decisions between food, medicine, education, and shelter.

Surging Inflation


According to international economic and humanitarian reports, surging inflation, supply chain disruptions, ongoing conflicts, climate-related disasters, and economic instability have significantly increased the cost of living worldwide. While these rising pressures are affecting households everywhere, the burden falls disproportionately on low-income communities and developing nations, where millions are already struggling to meet basic daily needs.

Life for Relief and Development (LIFE), a global humanitarian organization dedicated to providing aid regardless of race, gender, religion, or cultural background, is witnessing firsthand the growing impact economic pressures have on crisis-affected communities across the Middle East, Africa, Asia, Eastern Europe, and beyond.

Limited Resources


“In many of the communities we serve, families were already surviving on very limited resources,” said Dr. Hany Saqr, CEO of LIFE. “Now, with food prices soaring and essential goods becoming increasingly unaffordable, many parents are struggling simply to feed their children. What may feel like inflation in one part of the world can become a matter of survival in another.”

LIFE’s humanitarian teams continue to respond through emergency food assistance, orphan support programs, healthcare initiatives, clean water projects, seasonal aid distributions, and long-term development efforts aimed at helping families regain stability and self-sufficiency. Working in more than 60 countries, LIFE has helped deliver $667 million usd/ $922.4 million cad in humanitarian assistance over the past three decades, supporting vulnerable communities affected by conflict, hunger, displacement, poverty, and disaster.

“Humanitarian aid is no longer just about responding to emergencies after they happen,” Dr. Saqr added. “For millions of families, assistance is what prevents a difficult situation from becoming a catastrophe.”

In addition to its ongoing humanitarian initiatives, LIFE will perform Udhiyah/Qurbani distributions this year in 32 countries. Through the annual program, fresh meat will be distributed to families experiencing difficulty during Eid al-Adha. Last year, the initiative helped combat food insecurity for nearly 200,000 people worldwide, including families in Gaza who received canned meat distributions due to ongoing access restrictions. LIFE says the program not only helps provide nutritious meals but also allows vulnerable families to participate in Eid with dignity.

Growing Challenges


As the world continues to face growing economic and humanitarian challenges, compassion, shared responsibility, and collective action can play a significant role in shaping a more just and hopeful future. Life for Relief and Development believes that meaningful change begins when people choose not to turn away from suffering but instead work together to help create a more humane, equitable, and sustainable world while opening pathways toward greater stability and opportunity for future generations.

More information:

https://linktr.ee/LIFEUSA

https://donate.lifeusa.org/donorportal/udhiyah

World Economic Forum 56th Annual Meeting Has Spirit Of Dialogue Theme

Chief Economists Perceive Relative Resilience but Remain Concerned about Asset Prices, Debt and Geoeconomic Tensions

Acknowledging the relative resilience of the global economy amid turbulence, 53% of chief economists surveyed expect global economic conditions to weaken in the year ahead, down from 72% in September 2025.Uncertainty around technology remains high, with 52% expecting AI-related stocks to decline and 40% expecting gains. On growth, expectations diverge by region, with economists expecting strong momentum in South Asia and East Asia and weak to moderate growth in Europe.

On macroeconomics, nearly a third of respondents are concerned about sovereign debt crises in advanced economies and nearly half in emerging economies; over 60% expect governments to rely on higher inflation and tax revenues to manage elevated debt.Learn more about the Chief Economists’ Outlook here.

Follow the Annual Meeting 2026 here and on social media using #WEF26.

Geneva, Switzerland, January 2026 – The global economic outlook has improved modestly but remains uncertain, with asset valuations, mounting debt, geoeconomic realignment and rapid artificial intelligence deployment creating both opportunities and risks, according to the World Economic Forum’s latest Chief Economists’ Outlook, published today. Although 53% of chief economists expect global economic conditions to weaken in the year ahead, this marks a significant improvement from the 72% who held this view in September 2025.
 
“The Chief Economists survey reveals three defining trends for 2026: surging AI investment and its implications for the global economy; debt approaching critical thresholds with unprecedented shifts in fiscal and monetary policies; and trade realignments,” said Saadia Zahidi, Managing Director, World Economic Forum. “Governments and companies will have to navigate an uncertain near-term environment with agility while continuing to build resilience and invest in the long-term fundamentals of growth.”
 
AI and other asset valuations are under scrutiny
Concentrated AI stock gains are splitting the views of the chief economists. A narrow majority (52%) are expecting AI-related US stocks to decline over the next year, but 40% foresee further increases. Should values fall sharply, 74% believe impacts would spread across the global economy. Cryptocurrencies face bleaker prospects, with 62% anticipating further declines following market turbulence, while 54% believe gold has peaked after recent rallies.
 
When it comes to the potential expected returns from AI, there is wide variation across regions and sectors. Roughly four in five chief economists expect productivity gains within two years in the US and China. Chief economists expect the information technology sector to adopt AI fastest, with nearly three-quarters anticipating imminent productivity gains. Financial services, supply chain, healthcare, engineering and retail follow as “fast-movers”, with one to two-year timelines. By firm size, the chief economists expect companies with 1,000+ employees to see gains earlier than others: 77% of chief economists expect meaningful productivity gains within two years.
 
The employment picture in relation to AI is expected to evolve over time: two thirds expect modest job losses over the next two years, but views diverge sharply over the longer term: 57% anticipate net losses over 10 years, while 32% foresee gains as new occupations emerge.
 
Debt may drive difficult trade-offs
Managing elevated debt levels has become a central challenge for policy-makers, particularly as spending pressures rise. Defence spending is almost unanimously expected to increase, with 97% of chief economists anticipating rises in advanced economies and 74% in emerging markets. Digital infrastructure and energy spending are also expected to rise. Most other sectors are expected to see stable levels of spending, while a majority of surveyed economists anticipate spending on environmental protection to decline in both advanced (59%) and emerging economies (61%).
 
Views are split equally on the likelihood of sovereign debt crises in advanced economies, while nearly half (47%) see them as likely in the year ahead in emerging economies. A large majority of chief economists expect governments to rely on higher inflation to reduce burdens (67% in advanced economies, 61% in emerging markets). Tax increases are also viewed as likely by 62% for advanced economies and 53% for emerging markets. Some 53% of chief economists anticipate seeing debt restructuring or default as a debt management strategy in emerging markets over five years, compared to just 6% for advanced economies.
 
Trade flows and regional growth outlooks are realigning
Global trade and investment are adjusting to a new, competitive reality. Chief economists expect import tariffs between the US and China to remain mostly stable, though competition could intensify in other domains. Some 91% expect US tech export restrictions to China to remain or increase; 84% anticipate the same for Chinese critical mineral restrictions.
 
In this new context, 94% of chief economists expect more bilateral trade deals and 69% anticipate growth in regional trade agreements. Some 89% expect Chinese exports into non-US markets to further increase, while surveyed economists are split on the future of global trade volumes. Meanwhile, almost half of them foresee the continued rise of international investment flows, and 57% expect FDI into the US to increase compared to 9% who expect increased inflows to China.
 
When it comes to growth expectation among the chief economists surveyed, South Asia leads with 66% anticipating strong or very strong performance, driven by robust growth in India. Some 45% expect strong growth and 55% moderate growth in East Asia and the Pacific. Some 36% expect strong growth and 64% moderate growth in the MENA region. The US outlook improved notably, with 69% expecting moderate growth versus 49% in September 2025, but only 11% expecting strong growth. China faces mixed prospects, with 47% expecting moderate growth and 24% strong growth and nearly an equal number – 29% – expecting weak growth. Europe confronts the weakest outlook, with 53% expecting weak growth, 44% moderate growth, and only 3% anticipating strong growth.
 
About the Chief Economists’ Outlook
The report builds on extensive consultations and surveys with chief economists from the public and private sectors, organized by the World Economic Forum’s Centre for the New Economy and Society. The report supports the Forum’s Future of Growth Initiative, aiming to foster dialogue and actionable pathways to sustainable and inclusive economic growth. The Chief Economists’ Outlook is complemented by other recent publications with economic foresight. Four Futures for the New Economy and Four Futures for Jobs in the New Economy explore strategic implications for businesses navigating geopolitical shifts, technology disruption and workforce transformation through 2030, offering indicators to track and strategies to prepare for multiple scenarios.
 
About the Annual Meeting 2026
The World Economic Forum’s 56th Annual Meeting, taking place today the 19th and running until 23 January 2026 in Davos-Klosters, Switzerland, will convene leaders from business, government, international organizations, civil society and academia under the theme, A Spirit of Dialogue. Click here to learn more.
 
A Spirit of Dialogue Brings Record Numbers of World Leaders to Davos for World Economic Forum Annual Meeting 2026

A record 400 top political leaders, including close to 65 heads of state and government – with six G7 leaders expected – nearly 850 of the world’s top CEOs and chairs, and almost 100 leading unicorns and technology pioneers will convene in Davos-Klosters for one of the highest-level gatherings in the Annual Meeting’s history.  Held under the theme of A Spirit of Dialogue, the 56th Annual Meeting will provide an impartial platform for close to 3,000 participants from over 130 countries to navigate the major economic, geopolitical and technological forces reshaping the global landscape.

A major focus will be on the unprecedented speed of innovation and technological advancement with key voices from industry and academia present.– At a pivotal moment for global cooperation, the World Economic Forum will convene its 56th Annual Meeting today in Davos-Klosters, Switzerland, bringing together close to 3,000 cross-sector leaders from over 130 countries under the theme A Spirit of Dialogue. Marking record levels of governmental participation, 400 top political leaders – including close to 65 heads of state and government and six of the G7’s leaders – are expected to take part, alongside nearly 850 of the world’s top CEOs and chairpersons, and almost 100 leading unicorns and technology pioneers.  
 
Amid the most complex geopolitical backdrop in decades – marked by rising fragmentation and rapid technological change – the need for an impartial platform that brings together diverse and sometimes diverging voices across industries, regions, and generations is urgent. Building on the Forum’s long-standing tradition of providing a trusted space for dialogue and public-private collaboration, the Annual Meeting 2026 will enable an open exchange of ideas and perspectives on the issues that matter most to people, economies and the planet, turning shared understanding into action.
 
“Dialogue is not a luxury in times of uncertainty; it is an urgent necessity,” said Børge Brende, President and CEO, World Economic Forum. “At a critical juncture for international cooperation – marked by profound geoeconomic and technological transformation – this year’s Annual Meeting will be one of our most consequential. With historic levels of participation, it will provide a space for an unparalleled mix of global leaders and innovators to work through and look beyond divisions, gain insight into a fast-shifting global landscape, and advance solutions to today’s and tomorrow’s biggest and most pressing challenges.”
 
“As the World Economic Forum enters its next chapter, this year’s Annual Meeting is bringing together a record number of global leaders from government, business, and non-governmental organizations at a moment when dialogue matters more than ever,” said Larry Fink, Interim Co-Chair, World Economic Forum. “Understanding different perspectives is essential to driving economic progress and ensuring prosperity is more broadly shared.”
 
“At a moment when cooperation matters more than ever, the Annual Meeting provides a unique space to turn dialogue into meaningful progress,” said André Hoffmann, Interim Co-Chair, World Economic Forum. “By bringing together leaders across regions and sectors, it creates the conditions to rebuild trust, align priorities and advance solutions that support long-term, sustainable growth for all, within planetary boundaries.”
 
Switzerland is the host country for the meeting. 400 government leaders are expected to attend this year, representing the highest level of government participation in the Annual Meeting’s history, including close to 65 heads of state and government, 55 ministers for economy and finance, 33 ministers for foreign affairs, 34 ministers for trade, commerce and industry, and 11 Governors of Central Banks. High-level government representation is expected from all key regions, including six G7 leaders and heads of state from countries central to dialogue on critical global situations – from Ukraine to Gaza and the broader Middle East, and beyond.   
  
Top political leaders taking part include:
 
Top political leaders taking part include: Donald Trump, President of the United States of America; Mark Carney, Prime Minister of Canada; Friedrich Merz, Federal Chancellor of Germany; Ursula von der Leyen, President of the European Commission;  He Lifeng, Vice-Premier of the People’s Republic of China; Javier Milei, President of Argentina; Prabowo Subianto, President of Indonesia; Pedro Sánchez, Prime Minister of Spain; Guy Parmelin, President of the Swiss Confederation 2026; Vahagn Khachaturyan, President of the Republic of Armenia; Ilham Aliyev, President of the Republic of Azerbaijan; Bart De Wever, Prime Minister of Belgium; Gustavo Petro, President of Colombia; Félix-Antoine Tshisekedi Tshilombo, President of the Democratic Republic of the Congo; Daniel Noboa Azín, President of Ecuador; Alexander Stubb, President of Finland; Kyriakos Mitsotakis, Prime Minister of Greece; Micheál Martin, Taoiseach, Ireland; Aziz Akhannouch, Head of Government, Kingdom of Morocco; Daniel Francisco Chapo, President of Mozambique; Dick Schoof, Prime Minister of the Netherlands; Mian Muhammad Shehbaz Sharif, Prime Minister of Pakistan; Mohammed Mustafa, Prime Minister of the Palestinian National Authority; Karol Nawrocki, President of Poland; Mohammed Bin Abdulrahman Al Thani, Prime Minister and Minister of Foreign Affairs of the State of Qatar; Aleksandar Vučić, President of Serbia; Tharman Shanmugaratnam, President of Singapore; Isaac Herzog, President of the State of Israel; Ahmad Al Sharaa, President of Syria; Volodymyr Zelenskyy, President of Ukraine.     
 
Heads of international organizations taking part include:
 
António Guterres, Secretary-General of the United Nations; Ngozi Okonjo-Iweala, Director-General of the World Trade Organization; Ajay S. Banga, President of the World Bank Group; Kristalina Georgieva, Managing Director of the International Monetary Fund; Mark Rutte, Secretary-General of the North Atlantic Treaty Organization; Tedros Adhanom Ghebreyesus, Director-General of the World Health Organization; Alexander De Croo, Administrator of the United Nations Development Programme; Mathias Cormann, Secretary-General of the Organisation for Economic Co-operation and Development; Doreen Bogdan-Martin, Secretary-General of the International Telecommunication Union; Barham Salih, UN High Commissioner for Refugees; Jasem Al Budaiwi, Secretary-General of the Gulf Cooperation Council. 
 
Around 1,700 business leaders, including close 850 of the world’s top CEOs and chairpersons from the World Economic Forum’s Members and Partners, will also participate, alongside almost 100 CEOs and chairpersons of Unicorn companies and Tech Pioneers who are transforming industries and shaping the future or technology worldwide.
 
Some of the top voices in technology and innovation taking part include:
 
Jensen Huang, NVIDIA; Satya Nadella, Microsoft; Dario Amodei, Anthropic; Dina Powell McCormick, Meta; Demis Hassabis, Google DeepMind; Yoshua Bengio, Université de Montréal; Alex Karp, Palantir Technologies; Sarah Friar, OpenAI; Yuval Harari, Centre for the Study of Existential Risk; Khaldoon Khalifa Al Mubarak, Mubadala; Peggy Johnson, Agility Robotics; Arthur Mensch, Mistral AI; Bret Taylor, Sierra; Peng Xiao, G42; Eric Xing, Mohamed bin Zayed University of Artificial Intelligence.
 
“In an era where exponential technological innovation and geopolitical disruption are deeply intertwined, the need for constructive dialogue between policy-makers and industry is clear,” said Mirek Dušek, Managing Director, World Economic Forum. “Leaders will share views from across sectors to help build the understanding needed to balance short-term priorities and immediate challenges with long-term value creation.”
 
Close to 200 leaders from civil society and the social sector – including labour unions, non-governmental and faith-based organizations, as well as experts and heads of the world’s leading universities, research institutions and think tanks – will also participate in the meeting.
 
Heads of civil society organizations participating include: 

 
David Miliband, President and CEO, International Rescue Committee; Sania Nishtar, CEO, Gavi, The Vaccine Alliance; Luc Triangle, General Secretary, International Trade Union Confederation; Kirsten Schuijt, Secretary General, WWF International; Mohammad Al-Issa, Secretary General, Muslim World League; Comfort Ero, President and CEO, International Crisis Group; Pinchas Goldschmidt, Chief Rabbi and President, Conference of European Rabbis; Oleksandra Matviichuk, Nobel Peace Laureate and Chair, Ukraine Center for Civil Liberties; Peter Sands, Executive Director, The Global Fund; Amitabh Behar, Executive Director, Oxfam International; Aulani Wilhelm, President and Executive Director, Nia Tero.
 
 
The 2026 programme is centred around five pressing global challenges where public-private dialogue and cooperation, involving all stakeholders, are critical for collective progress:How can we cooperate in a more contested world?How can we unlock new sources of growth?How can we better invest in people?How can we deploy innovation at scale and responsibly?How can we build prosperity within planetary boundaries?  “In a global economy shaped by technology, geoeconomics, and demographics, the defining challenge will be whether opportunity is broadly shared or if growth remains sluggish and uneven,” said Saadia Zahidi, Managing Director, World Economic Forum. “The meeting will connect leaders to discuss how to unlock growth, jobs and economic transformation that translate into progress for communities everywhere.
“The meeting’s Arts and Culture Programme will further amplify the diversity of voices and perspectives needed to advance impact, while showcasing the power of art, influence, and culture to drive change and create unique space for dialogue.
 
Renowned artistic and cultural leaders in attendance include:

 
Marina Abramović, Jon Batiste, Thijs Biersteker, Sabrina Elba, Renaud Capuçon, Hiro Iwamoto, Suleika Jaouad, Sir David Beckham, Ahmad Joudeh, Yo-Yo Ma, Emi Kusano, Harvey Mason Jr, Hans Ulrich Obrist, Katie Piper, Ronen Tanchum, JR and will.i.am.
 
The Open Forum, now in its 23rd year, will host public panel discussions for the local community and participants from around the world, encouraging wider participation and open dialogue on key global issues.

Black Friday Shopping: Fastest Growing Products, and Credit Card Trends

From Black Friday electronics deals and top appliance discounts to the best savings on furniture, sporting goods, and smartphones, North America’s biggest shopping event is fueled by one major factor: the use of credit cards for Black Friday purchases.

To understand how spending patterns have evolved, and how credit cards shape the Black Friday season, researchers from our friends at InvestorsObserver analyzed Black Friday shopping trends over the past three decades.

Though the focus was USA based (looking at trends on state-by-state and national sales data for durable goods, credit card transaction volumes, and shifts in consumer spending across key product categories like electronics, appliances, furniture, sporting goods, and jewelry), some parallels can be drawn between Canada and Mexico shopping habits.

The report reveals what was really driving Black Friday sales from 1997 till 2024. It shows which states and product categories had the biggest surge in spending, how much of that growth was fueled by increased credit card use, and which items have fallen out of favor with today’s shoppers.

Essentially, North Americans are using credit to buy smarter, invest in technology and fitness, and adapt their Black Friday shopping to reflect quickly changing priorities and lifestyles.

Key findings

  • Nationwide, US inflation-adjusted spending on durable goods during the Black Friday season increased by over 90% between 1997 and 2024, with states like Florida and Texas more than doubling their totals. Inflation is also a factor in Canada and Mexico.
  • Spending on telephone and related communication equipment surged over 600% in the top states.
  • Average credit card balances at major issuers (Amex, Discover, Capital One) have grown at an average monthly rate of 0.5% (approximately 6% per year) since 2020, with bold spikes during the Black Friday season.
  • Spending on traditional Black Friday luxury items, such as jewelry and new vehicles, dropped in several states.
  • Spending on sporting equipment, guns, and related goods soared, making these some of the fastest-growing Black Friday categories nationwide.

The 10 states where Black Friday spending on durable goods has skyrocketed

Over the past 30 years, Black Friday has exploded into a huge shopping event, totally changing how and where North Americans splurge on big-ticket items.

A few states are crushing it, with locals ramping up real spending on durable goods at huge rates during Black Friday season. The top 10 show not just wild shopper hype, but big shifts in what people actually purchase when those deals drop.

These states have seen their Black Friday durable goods spending, especially in technology, surge ahead of the national average. When Black Friday advertising kicks in, shoppers increasingly target the best deals on electronics, particularly smartphones, tablets, and communication devices.

Retailers have responded to it, making Black Friday the primary opportunity to upgrade devices and connect households at a fraction of the regular price.

  • North Carolina and North Dakota lead with over 600% growth, showing how the appetite for electronics has exploded since the late ‘90s, as more homes gained internet connectivity and mobile devices.
  • The Pacific Northwest and Sun Belt, including Washington, Nevada, and Texas, have also surged, which aligns with fast-growing populations and tech-forward consumer culture.
  • Hawaii and Maine’s high growth rates highlight how even small, geographically unique states have embraced Black Friday to shop for technology that bridges distances – both literal and social.

The overwhelming increase in spending on communication technology during the Black Friday season shows how the event has become less about traditional holiday shopping and more about allowing households to seize the latest digital opportunities. For millions of North Americans, Black Friday is now the time to connect and upgrade their devices.

Where Black Friday spending fell: Top 10 states with the biggest drops in durable goods purchases

While most states saw Black Friday spending on durable goods soar over the past 25 years, not every category or region had gains. In fact, several states experienced notable declines, particularly in traditional big-ticket Black Friday items like jewelry, watches, and new cars.

This change reveals new consumer values, the impact of modern technology, and a growing focus on more practical or tech-driven purchases.

Jewelry and watches in retreat

The sharpest drop comes from jewelry and watches. Vermont, Maine, Connecticut, Iowa, and Michigan all had double-digit declines. This suggests that big-ticket jewelry has lost its luster as a Black Friday buy. Americans may be choosing technology upgrades and home improvements over luxury items that were once holiday staples.

New motor vehicles lose their spot

For decades, Black Friday was also the season of auto deals and year-end vehicle promotions. However, states like Illinois, Connecticut, Michigan, and Ohio had a significant real decline (–10 to –15%) in Black Friday spending on new cars. Today’s shoppers may be holding onto cars longer, buying used, or shifting their big December purchases toward electronics and appliances.

The fall of traditional electronics

West Virginia stands out as one of the few states where spending on video, audio, photographic, and information processing equipment has actually declined since 1997, dropping by 16% when adjusted for inflation. West Virginians are moving away from traditional Black Friday electronics, like older TVs, cameras, and stereo systems, and are investing less in these categories than they did a generation ago.

What’s behind these Black Friday drops?

  • Priorities are changing. North Americans are investing in what makes daily life more comfortable and modern, leaving behind items seen as old-fashioned luxuries.
  • The tech has taken over. Gadgets, home entertainment, and fitness equipment now win out over jewelry and autos for Black Friday deals.
  • Economic reality has shifted. The increasing role of credit cards and shifting family budgets means shoppers are looking for purchases that deliver daily utility rather than show status.

In other words, today’s Black Friday is less about “once-in-a-lifetime” traditional purchases and more about value, technology, and practical upgrades. The states with the biggest declines in jewelry and car sales are signals of this broader cultural and economic change.

America’s top 10 states for Black Friday durable goods spending (2024)

Black Friday remains the biggest shopping event of the year, and nowhere is this more apparent than in the nation’s leading states for durable goods purchases. Some states outpace the rest of the U.S. in total spending on high-value items, like appliances, electronics, home furnishings, and more, during the Black Friday season. Their money and excitement drive shopping trends across the country.

Massive market size

California, Texas, and Florida are not just the largest states by population. They’re also the biggest spenders. Together, they account for nearly a quarter of all U.S. durable goods bought during Black Friday. This shows the influence of large, diverse, and economically dynamic populations.

Urban economies and consumer power

States such as New York, Illinois, and Pennsylvania maintain their spots in the top ten thanks to their large metropolitan areas and strong traditions of holiday shopping, where residents spend big on household upgrades and electronics.

Quick growth in the Sun Belt

North Carolina and Georgia have shot up the rankings in recent years. Their booming real estate, ongoing migration trends, and family-driven consumption translate into strong demand for appliances, furniture, and home technology each Black Friday.

Consistent Midwest and Northeast strength

Ohio and New Jersey round out the list, proving that established economies with significant suburban populations continue to drive major Black Friday spending, particularly for goods that make life more comfortable and connected.

In essence, these top 10 states are the engine rooms of North American Black Friday shopping. Their combined impact shapes national retail sales and spotlights where the most dollars flow when the country’s biggest holiday deals are up for grabs.

Top 10 increases in durable goods spending 2020–2024

The years since 2020 have been some of the most dynamic for Black Friday shopping in North American history. Faced with a global pandemic, shifting work habits, and new priorities at home, North Americans unleashed a wave of spending on major purchases, especially during the Black Friday season when deals were too good to pass up.

Some American states stand out for their extraordinary growth in durable goods spending, which reveals where the economic recovery and post-pandemic demand have hit hardest and fastest.

Pandemic-era investment in the home

From 2020 to 2024, North Americans spent more time at home than ever before, fueling a rush on Black Friday for home electronics, appliances, workout gear, and home office upgrades. For example, this is reflected in the double-digit growth seen in states like North Carolina, Nevada, and Texas.

Southern and Mountain West States are leading

The Sun Belt and fast-growing Western states dominate the top of the list. With population inflows, a hot housing market, and greater focus on quality-of-life purchases, places like Florida, Nevada, and Idaho led the way in increased spending.

Credit card power and Black Friday strategy

More consumers used credit cards to access historic Black Friday discounts, and they didn’t hold back. Their willingness to borrow, upgrade, and outfit homes helped power this unprecedented jump in durable goods purchases.

The return of consumer confidence

After the initial shock of the pandemic, these states came roaring back with strong job markets and economic growth. This confidence spilled over into Black Friday shopping, with many households finally making upgrades or purchases they had delayed.

Not just the big states – smaller markets shine

States like Idaho, Utah, and New Hampshire emerged as “growth champions,” showing that the Black Friday boom was not limited to the biggest economies, but spread across America’s most dynamic regions.

In essence, between 2020 and 2024, Black Friday’s power as an engine for big purchases was on full display in these top 10 states. The post-pandemic years became a transformation period for millions of households, with Americans seizing the moment – and Black Friday deals – to upgrade, renovate, and invest in what matters most.

Methodology and sources

The Personal Consumption Expenditure (PCE) data is collected from the U.S. Bureau of Economic Analysis.

The data is provided for every U.S. state.

For each state, we collected data on consumption expenditures in the following categories:

  • Durable goods: New motor vehicles; Furniture and furnishings; Household appliances; Tools and equipment for house and garden; Video, audio, photographic, and information processing equipment and media; Sporting equipment, supplies, guns, and ammunition.
  • Other durable goods: Jewelry and watches; Telephone and related communication equipment.
  • Expenditures are expressed in millions of dollars. The data covers the years 1997 through 2024. Each year’s data is adjusted for inflation using the Consumer Price Index for All Urban Consumers: All Items in the U.S. City Average (CPIAUCSL)

We calculated how expenditures have changed over time (1997–2024). All calculations are inflation-adjusted.

We pulled monthly credit loan issuance data (2018–2025) for American Express, Discover, and Capital One straight from Bloomberg.

For the Silo, Živilė Kasparavičiūtė

Chief Economists Warn of Weak Growth as Economic Environment Shifts

中文 | 日本語 | Español 
Quick Takeaways
-72% of chief economists expect global economy to weaken in 2026 as disruptions in trade, technology, resources and institutions signal a shift to a new economic environment.
-Regional growth pathways are diverging: 56% anticipate greater divergence between advanced and developing economies, with MENA and South Asia emerging as bright spots.
-Debt risks are intensifying in advanced economies, with 80% of respondents expecting vulnerabilities to grow.


New York, USA, October 2025 – The global economy is entering a period of weak growth and systemic disruption, according to the World Economic Forum’s latest Chief Economists’ Outlook, published today. Some 72% of surveyed chief economists expect the global economy to weaken over the next year, amid intensifying trade disruption, rising policy uncertainty and accelerating technological change. The findings point to the emergence of a new economic environment shaped by persistent disruption and growing fragmentation.

 
Diverging Pathways in a Fragmented Global Economy
The Outlook highlights sharp regional fault lines. Emerging markets are anticipated to be the main engines of growth, with the Middle East and North Africa (MENA), South Asia and East Asia and Pacific seen as bright spots. One in three chief economists expect strong or very strong growth in these regions. The outlook for China is more mixed, with 56% of chief economists anticipating moderate growth, though deflationary pressures are expected to persist. Growth is expected to remain more stagnant in advanced economies. In Europe, 40% expect weak growth with fiscal loosening (74%) and low or moderate inflation (88%). In the United States [& Canada ed.], most chief economists (52%) anticipate weak or very weak growth and high inflation (59%) as monetary policy is loosened (85%).
 
The chief economists warn that advanced and developing economies are on increasingly divergent growth pathways – 56% expect greater divergence over the next three years.
 
Towards a New Economic Environment
Chief economists overwhelmingly agree that today’s disruptions are structural rather than cyclical. Large majorities anticipate long-term disruption in natural resources and energy (78%), technology and innovation (75%), trade and global value chains (63%) and global economic institutions (63%). This marks an important shift. The global economy is not so much weathering isolated shocks as realigning, raising the stakes for new forms of leadership, cooperation and resilience.
 
“The contours of a new economic environment are already taking shape, defined by disruption across trade, technology, resources and institutions,” said Saadia Zahidi, Managing Director, World Economic Forum. “Leaders must adapt with urgency and collaboration to turn today’s turbulence into tomorrow’s resilience.”
 
Trade Realignment, Fiscal Strain and Debt Risks
Structural shifts in the global economy are playing out most visibly in trade, fiscal policy and debt. Some 70% of surveyed chief economists rate the current level of trade disruption as “very high”, far above other domains of the economy, and over three-quarters also expect disruption to trade and global value chains to cascade into other domains. In financial markets and monetary policy, 45% of surveyed economists rate disruption as high or very high, yet only 21% expect it to last. Even so, while 52% see a major near-term crisis in advanced economies as unlikely, 85% warn that any shock could have wide systemic effects.
 
With global public debt levels mounting, the chief economists surveyed highlight that debt vulnerabilities, once largely associated with emerging economies, are increasingly centred in advanced ones – 80% expect risks in advanced economies to grow in the year ahead. Fiscal vulnerabilities are also more frequently identified among the top growth inhibitors in advanced economies (41%) compared to developing economies (12%).
Follow the Sustainable Development Impact Meetings 2025 here and on social media using #SDIM25.
 
About the Chief Economists’ Outlook
The report builds on extensive consultations and surveys with chief economists from the public and private sectors, organized by the World Economic Forum’s Centre for the New Economy and Society. The report supports the Future of Growth Initiative, aiming to foster dialogue and actionable pathways to sustainable and inclusive economic growth.
 
About the Sustainable Development Impact Meetings 2025
The Sustainable Development Impact Meetings 2025 takes place from 22 to 26 September in New York, bringing together over 1,000 global leaders from diverse sectors and geographies. Held ahead of the World Economic Forum Annual Meeting 2026, these meetings are part of the Forum’s year-round work to accelerate progress on the growth, resilience and innovation through multistakeholder dialogues and action. 

For the Silo, Jarrod Barker.

Nine Percent Of Canada High Incomers Considering Using Foodbanks

Few Canadians are immune to the rising cost of living, according to a new report from Statistics Canada, with 9 percent of those in the highest income quintile considering using a food bank.

Data from spring 2024 shows that while 42 percent of Canadians are concerned over rising food prices, about 9 percent of those in the highest income bracket report they may have to turn to a food bank or similar community organization for help. That number rises to 14 percent for those in the second-highest income bracket, StatCan said.

A cart is filled with bags of food during a Thanksgiving food drive for the Ottawa Food Bank, at a grocery store in Ottawa on Oct. 7, 2023. The Canadian Press/Justin Tang

Nearly half of Canadians report struggling to meet day-to-day expenses, up 12 percentage points from 2022 to 45 percent.

The survey found that the number of Canadians who feel “quite a bit” or “extremely” stressed over financial issues increased slightly since 2022, from 33 percent to 35 percent this year.

Families with children and those living with a disability are struggling the most, StatCan said.

Fifty-five percent of families with children say rising costs have impacted their ability to cover daily expenses, compared to 42 percent of households without children and 37 percent of single Canadians.

Shrinkflation– a sneaky way of charging more by giving less. General Mills shrunk its “family size” boxes from 19.3 ounces to 18.1 ounces. Justin Sullivan/Getty Images

Those with disabilities are also more likely to be facing financial difficulties, with 57 percent saying they are struggling to meet daily costs, compared with 43 percent of those without a disability.

Housing is one of the biggest concerns Canadians cite, with nearly four in 10 saying they are concerned about their ability to afford a home because of rising prices. The number has risen from 30 percent in 2022 to 38 percent this year.

StatCan found that renters are more uneasy about increasing prices than homeowners, with nearly two-thirds of renters “very” concerned over housing affordability compared with about one-third of homeowners.

Food prices are another top concern for those surveyed, with more than one in five Canadians saying they may not be able to afford groceries. The number has risen to 23 percent, up from 20 percent two years ago.

Of those worried about food prices, 8 percent say they are very likely to need help from an organization such as a food bank. Another 15 percent say they are somewhat likely to need community help.

More than one in four families with children say they expect to turn to food banks and similar organizations, compared to one in five for other household types, StatCan said.

About one-third of Canadians with a disability say they expect to get food from a community organization in the next six months, compared to one in five of those without a disability, the agency said. For the Silo, Chandra Philip / The Epoch Times. The data was collected between April 19 and June 3.

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This is Where Canadians Want to Travel to This Summer

The trending destinations Canadians want to go on vacation this summer based on Google searches.

Where do Canadians want to go on their summer vacation in 2024?

With soaring inflation prices and the cost of essential shopping skyrocketing, millions of Canadians will plan to cut back on vacation spending. According to data from Ipsos*42% of Canadians say they plan to minimize their spending on vacations in 2024 as a way of dealing with the increased cost of living. Now, as the season changes into spring, more people are wondering what this summer has in store for them from a vacation perspective.

Are Canadians really looking to cut costs when it comes to their annual trip? Or has the economy got us looking outside of our usual go-to destinations?

Our friends at Top10casinos.ca, have used Google search data looking at terms around ‘summer vacations’ to find out which destinations around the world are most in-demand by Canadians looking to book their summer vacation in 2024. So, whether you need some inspiration for your next big trip, or just love a good list, here are the trending destinations Canadians want to go on vacation this summer based on Google searches.canada's favorite summer vacation

Revealed: Canada’s Top 10 Most in Demand Summer Vacation Hotspots in 2024

Research Reveals New York Will Be Canada’s Favorite Summer Vacation in 2024 – Getting 1.9 Million Searches Every Month

With 1.9 million monthly searches and a 6% increase in searches in the last 30 days, the metropolis of New York is officially Canada’s most desired destination for a summer vacation this year. Analyzing individual attractions that Canadians are most interested in visiting, searches for ‘new york broadway shows 2024’ are up 9,900% and people searching for ‘new york yankees schedule 2024’ are up 5,800%. For Canadians looking for an early Spring vacation, searches for ‘new york weather in April’ are up 750% in the last 30 days.

City Break Destinations Incredibly Popular for Canadian Summer Vacations in 2024

Half of the top 10 most-searched for summer vacation spots by Canadians are city break destinations with San Francisco, Las Vegas and Honolulu topping the list. The data shows that Vancouver residents are getting heart eyes for San Francisco. In the last month, there were 16,550 searches for summer vacations in the Golden Gate City and searches for ‘Vancouver San Francisco cruises’ are up 29% since the same time last year.

  • The Cold European Country of IcelandThe Cold European Country of Iceland Has the MOST Search Increases – Ranking Above Beach Favorite, Mexico Beaches, relaxing by the pool and all you can drink cocktails are usually synonymous with summer, but according to our study, Canadians want to escape the heat in favor of colder climes. With an average of over 689,980 monthly searches and a huge 122% increase in 30 days, Iceland surprisingly ranks in front of Mexico as a go-to vacation destination this summer. Looking at why Canadians might be interested in visiting the land of ice and fire, searches for ‘northern lights’ are up 10,900% and people looking at ‘portugal v iceland’ have increased 1,043% on Google. According to the regional data, Niagara Falls residents in particular are looking for a totally unique experience this summer, with searches for ‘Iceland summer vacation’ up 200% since the same time last year.
  • Cuba Revealed as Canada's Most Desired Beach DestinationCuba Revealed as Canada’s Most Desired Beach Destination This Summer – Ranking Above Mexico and Costa RicaWith more than 712,000 monthly searches and an increase of 36% in 30 days, Cuba is revealed as Canada’s most desired beach vacation destination for summer 2024. According to the data, Canadians are researching long distance swimming in the country, with searches for ‘swim from cuba to florida’ up 3,500% and ‘vacations to cuba’ up 333%.
  • The Dominican Republic Ranks in Top 10The Dominican Republic Ranks in Top 10 With over 97,000 monthly searches for ‘The Dominican Republic summer vacation’ and a 35% increase in the past month – it’s evident the Caribbean Island will be one of the most coveted destinations by Canadians this summer, which is why it features in the top 10. When analyzing search trends on a city level, Montréal has seen a 25% increase in residents’ searching for the beautiful beach spot, and Ottawa shows a 20% surge.

trending destinations canadians want to go on vacation

Mapped: Most Desired Vacation Destinations Across Canada, Revealed

  • Las VegasLas Vegas Named the Most Desired Destination The gambling capital of the world is the most searched for city across the 10 cities of Alberta with searches spiking by nearly half (48%) since the same time last year. With 1.7 million monthly searches and a 12% increase in Canadian’s searching for the desert oasis summer vacation, Las Vegas has seen a 6% increase in search increases than topspot New York, the city also ranks above favorites Cuba and Mexico.
  • GreeceGreece Ranks Second as Research Reveals European Summer Vacations Most Popular with Ontario ResidentsThe data shows there’s a rapid number of Canadians looking to experience a European summer vacation this year, with both Greece and Italy coming up top in Ontario. Looking at the most searched for destinations, searches for Greece’s picturesque Santorini have increased by 67% since the same period last year across Canada, and Italy’s Rome have spiked 25%.
  • Costa RicaCosta Rica is the Most Desired Destination by Two ProvincesFilled with rugged rainforests, pristine lagoons and beautiful beaches, it’s little wonder the Central American country of Costa Rica is the most desired by two parts of Canada. Provinces of Quebec and Manitoba both had Costa Rica as their favorite destination, with searches for the tropical country up by an average of 81% across 10 cities in Quebec since the same time last year. Looking at locations on a city level, searches for ‘all inclusive Costa Rica vacations’ are up 300% in Quebec City, highlighting a need to escape busy metropolitan life.
  • Toronto's 3 Favorite Summer Vacation SpotsToronto’s 3 Favorite Summer Vacation Spots are all City DestinationsResidents hailing from Ontario’s capital, Toronto, are interested in keeping the summer city spirit alive, with 3 favorite destinations also being city spots. According to the data, Toronto’s favorite destination is Dubai with a 49% increase in searches since the same time last year. Closely followed by Rome (22%), and Miami (20%).

Methodology

  1. Using articles around the topic of “bucket list travel destinations”, “best vacations in 2024” we were able to collect a list of approx 100 dream global travel destinations. To allow for us to make sure we’re focusing on those who want to holiday in these locations we assigned the prefixes “summer vacations in” to all locations. These terms were then entered into keywordtool.io to collect the average monthly search volume and search trends (over the last 12 months) per state.
  2. Search volumes and trends were gathered using https://keywordtool.io/
  3. All data correct and accurate as of 11th April 2024

Sources

https://www.ipsos.com/en-ca/canadians-cut-back-2023-and-plan-continue-cuts-2024

For the Silo, Amanda Evans

International Monetary Fund- World Economy Still Recovering

The IMF announced today (Tuesday, April 11, 2023) in the World Economic Outlook’s press briefing that the baseline forecast for global output growth is 0.1 percentage point lower than predicted in the January 2023 WEO Update, before rising to 3.0 percent in 2024.

“The world economy is still recovering from the unprecedented upheavals of the last three years, and the recent banking turmoil has increased uncertainties.”

“We expect global output growth to fall from 3.4% last year to 2.8% in 2023, before rising to 3% in 2024, mostly unchanged from our January projections. Advanced economies are expected to see an especially pronounced growth slowdown from 2.7% in 2022 to 1.3% in 2023. Global headline inflation is set to fall from 8.7% in 2022 to 7% in 2023 on the back of lower commodity prices but underlying core inflation is proving to be stickier. Importantly, this outlook assumes that recent financial stresses remain contained,” said Pierre-Olivier Gourinchas, the IMF’s Chief Economist.

Much uncertainty clouds the short- and medium-term outlook as the global economy adjusts to the shocks of 2020–22 and the recent financial sector turmoil. Recession concerns have gained prominence, while worries about stubbornly high inflation persist.

Chart- world economic outlook projections including Canada.

“Once again, risks are heavily tilted to the downside, they have risen with the recent financial turmoil. Most prominently, recent banking system turbulence could result in a sharper and more persistent tightening of global financial conditions. The simultaneous rate hikes across countries could have more contractionary effects than expected, especially as debt levels are at historical highs. There might be a need for more monetary tightening if inflation remains stickier than expected. These risks and more could all materialize at a time when policymakers face much more limited policy space to offset negative shocks, especially in low-income countries,” added Gourinchas.

With the fog around current and prospective economic conditions thickening, policymakers have a narrow path to walk towards restoring price stability while avoiding a recession and maintaining financial stability. Achieving strong, sustainable, and inclusive growth will require policymakers to stay agile and be ready to adjust as information becomes available.

“First, as long as financial stress is not systemic as it is now, the fight against inflation should remain the priority for central banks. Second, to safeguard financial stability, central banks should use separate tools and communicate their objectives clearly to avoid unwarranted volatility. Financial policies should remain laser focused on preserving financial stability and watch for any buildup of risks in banks, non-banks, and the real estate sectors. Third, in many countries fiscal policy should tighten to ease inflation pressures, restore debt sustainability, and rebuild fiscal buffers. Finally, in the event of capital outflows that raise financial stability risks, emerging market and developing economies should use the integrated Policy framework, combining temporary targeted foreign exchange interventions and capital flow measures where appropriate,” said Gourinchas.

Novel Warns North Americans Of Corrupt Bankers And Valueless Dollar

Back in 2012 The Silo reported on a dark novel titled Zurabia. That book held a plot that seems less like fiction with each passing year.  Corrupt bankers, a practically valueless dollar, hyper-unemployment and underemployment, home-grown terrorism, the uptick in natural disasters and the overall lack of trust in our most important institutions – these are some of the reasons all North Americans should be very, very concerned, according to author Peter Dash a world-traveled researcher for Harvard University’s Center for International Affairs.

Peter Dash and his novel

“I predict a brutal world ahead of us,” says Dash, author of “ZUrabia,” a book about rogue forces taking over the world’s most important institutions. “Unfortunately, I have been right since my research at Harvard in 1986, when I questioned the viability of government institutions to meet general needs and growing problems, both domestically and abroad.”

The pragmatic holiday shopper this year will purchase items to safeguard their families against these threats, which have been long in the making and won’t disappear quickly, he says.

From Dash’s homepage- a map of Zurabia complete with mountains and a mushroom cloud. Biblical ! CP

“Terrorism wasn’t inaugurated with 9-11; extremism in Muslim sects has been growing for decades, and Neo-Nazi groups are starting to flourish in failing states like Greece,” he says. “The dollar has been steadily losing its value since the creation of the Federal Reserve in 1913; climate change has been on the radar for quite a while; and there have been greedy bankers since, well, banks have existed.”

“If you’re confident that everything is sure to be okay, then you’re not paying attention,” he says.

He offers a four-point survival strategy for holiday and everyday shopping:

• Gold is good: The dollar has lost 95 percent of its value in 100 years, and it will continue losing value. As
the Reserve continues to flood money into the system, thereby reducing current or potential value, more inflation is inevitable, acting as yet another tax on wages. So, collect and buy any gold that you can and consider spending federal notes while they’re still worth something to businesses. Think about your
jewelry, and buying more. Silver is a good option if gold is too expensive, and there are Exchange Traded Funds, or ETFs, that are backed by physical gold. A reputable banker or broker can help explain for those who are interested. “TD Ameritrade or Charles Schwab may be good places to start getting information on gold and silver ETF trading,” according to Dash.

• Inflation: Spend your money now or smartly invest it before you lose it. Remember, banks often give clients less than one percent on many accounts, but inflation on food and real items we use, like gasoline, are going up by much more. In essence, your banker is stealing your money through the assistance of the Fed, which is killing your savings rate by cheapening money. As if to pour salt on this wound, the bank,
in many cases, lends money at four percent or higher. Rerouting some bank savings/wages by investing in canned food, for example, may protect you against the scourge of food inflation, as well as other disasters.

• Worthy purchases: With food and water, a failed society puts a premium on additional goods. They include home insulation, gardening tools and materials, computer programs and language learning kits – perhaps Spanish or Chinese – because of the increasing prominence of other cultures. Guns, security systems and other measures to protect one’s home will likely prove extremely valuable should law enforcement be spread too thin, or fail as an institution.

• Buy in bulk: Places like Wal-Mart or Costco will help you get the most value with large purchases of food. It’s important to be well-stocked if something happens that results in the emptying of grocery markets, but remember to have adequate space in your house, apartment or cabin for a “safe” room, which is part of a sound strategy for protecting you and your family.

Peter Dash has been a teacher, professor and corporate trainer for the last 17 years, working in Saudi Arabia, the former Soviet Union and China. He has an applied science degree in forestry from the University of British Columbia and a Masters in applied teaching from Southern Queensland in Australia. He was a researcher in world (dis) order and youth groups at Harvard University’s Center for International Affairs, started by Henry Kissinger. He follows the investment field intensely, focusing on commodity funds and trends.
Fifteen percent of his book’s royalties will go to needy students consistent to the many years Dash has worked in assisting voluntary youth organizations. He lives on a small tropical island that is stocked with the finest well water, fish and food. Dash invests in Gold ETFs and commodity trading companies.

Supplemental– CBC radio interview with Dash on Zurabia

Silo Reader Says All Products And Services Should Compete In A “Free Market”

Letters to the Silo

The [ image that is shown with Toby Barrett’s recent letter ] is certainly worth a thousand words. Government is consuming too much.

But why do we continue to feed government? Why would we participate in any political or economic system that is not serving our best interests?

Government is basically unproductive and can only give what it takes. Bigger government takes more and gives less.

The fruits of our labour are controlled, confiscated, and redistributed through taxation, inflation, interest, and government spending. There is also a systemic shortage of official currency, which leads to a shortage of paid employment, and the jobs that are available might be completely unproductive. We are forced to compete for currency that is systemically scarce, even though there are plenty of worthwhile activities that can be done and there are plenty of people who are willing and able to do productive work.

There seems to be an increasing level of dissatisfaction with government and the political process, but there certainly isn’t a consensus in defining the problem or offering a solution that will sufficiently address all of our concerns or satisfy everyone. This poses a challenge, but it also presents us with an opportunity to carefully examine the form and function of government, and explore a full range of possible alternatives.

If we have freedom of choice and a free market then we should be able to individually select the goods and services that we wish to purchase from a variety of producers and providers, who should be able to compete for customers based on the quality and price of their products and services. All products and services, including government programs and services, should be able to compete in a free market.

Trade and exchange should be voluntary and mutually beneficial. We should not be forced to pay for anything that we don’t want or don’t use, and we should not have to do business with anyone who consistently offers poor quality goods and services or who does not pay their legitimate debts.

If we have economic freedom then we should be able to negotiate agreeable prices, accept or refuse any form of payment, control the allocation of our credit, and use any method or medium of exchange. We should not be compelled to use a systemically scarce currency that is created as interest-bearing debt.

If the purpose of an economic system is to facilitate the production and exchange of goods and services then it should be possible to create numerous ways to serve this purpose, with various concurrent systems operating in any location. This would give us more control over our time, labour, skills, and resources.

If government is a provider of services then it should compete for customers based on the quality and price of any services that it is actually willing and able to provide, including education, health care, and defence. If government services were the best ones available then we would presumably choose to use them. Our wealth should not be confiscated and redistributed to pay for anything that we don’t want or don’t use.

We can already seek membership in various communities, organizations or other groups, based on our own political, religious, social, recreational, or business interests. If we have freedom of association and political freedom then we should even be able to choose a apolitical system and type of government, without having to move to a different place, and without imposing or choice on anyone else. This would give us the option to hire people to manage our affairs and make decisions on our behalf, but we would not be represented or lead without imposing our consent.

Crony Capitalism Warren Buffett

Any imposed political system or government is a method of control. Political freedom does not exist if an individual is forced to accept the decisions of any other individual or group, even if it calls itself a majority.

Imposed political systems and territorial governments with their restrictive geopolitical boundaries can be replaced with a variety of voluntary communities, mutual benefit associations, and autonomous protective groups, with overlapping membership in any location. Multiple communities can exist in any geographic region, without any imposed territorial monopolies for the provision of services.

Individual participation in any economic or political system should be entirely voluntary, based on choice and consent, rather than coercion and compulsion. No person is an island, but everyone should essentially be able to individually decide how he or she would like to organize and manage his or her economic and political activities.

Government is a human invention that has changed over time and will continue to change, but the direction of this change will be determined by the way we think and the choices we make.

Diverse methods and arrangements can co-exist simultaneously in any location to facilitate the production, provision, distribution, and exchange of goods and services, for the mutual benefit of all voluntary participants, at their own risk and expense. James Clayton

Note- boldfacing was not indicated in the original submitted letter to the Silo.

Wagon Wheel Corn Maze