Will Spending Resume Post COVID? Behavioural economists say that it depends onthe triggering of a number of psychological biases, especially the types of “accounts” in which consumers have allocated their savings
Yan Barcelo 9 April, 2021 | 1:45AM
Consumers worldwide and in Canada are sitting on unprecedented hoards of cash accumulated during the pandemic. According to a CIBC report published in November 2020, Canadian households and businesses were sitting on $170 billion of excess cash, $90 billion of that in consumer accounts, representing 4% of consumer spending.
This is in line with what’s happening elsewhere. Bloomberg Economics reports that globally, consumers saved close to US$3 trillion by the end of February 2021.