Mind the Gap: Canadian Sentiment & Economic Reality in 2024

A Deep Dive into ‘24

Canada's economy in 2024 presented a complex narrative best understood through multiple lenses. This analysis examines three perspectives that shaped the year's financial landscape: the economic data, the media narratives that interpreted these developments, and the response of a subset of Canadians. By weaving together these distinct information streams, we uncover a more nuanced understanding of how macro-level economic realities resonated across Canada this year.

Our Approach

To understand the mood of financially engaged Canadians this year, we:

Tracked key economic indicators from Statistics Canada and the IMF (Oct 2023–Oct 2024)
Examined the most-viewed economic videos on major news networks' YouTube channels, accumulating 5,859,448 views (Jan–Dec 5, 2024)
Analyzed over a thousand discussions across Canada's largest financial communities on Reddit (Jan–Dec 5, 2024)

For our sentiment analysis of Reddit discussions and YouTube content, we used a scale from –1 (extremely negative) to +1 (extremely positive), allowing us to quantify the tone and tenor of discussions.

The Numbers

Between October 2023 and October 2024, Canada's economic indicators revealed significant structural shifts in the economy.

The labour market showed clear signs of cooling, with unemployment climbing from 5.7% to 6.5%, hitting an uncomfortable peak of 6.6% in August.¹

The housing market showed significant contraction, with housing starts declining to 19,670 units, representing an 11.2% decrease year-over-year.²

Broader economic metrics indicated underlying stability despite sectoral challenges: GDP growth maintained at 1.3%,³ while inflation moderated to 2.0% year-over-year.⁴

Media Analysis and Market Interpretation

When we turned to YouTube - the second most visited site in Canada after Google⁵ - we found major Canadian news networks taking distinct approaches. Our analysis of the most-viewed "Canadian Economy" videos collectively reached nearly 6 million viewers.

CBC News (Sentiment: -0.5) maintained the most critical stance, with their most-viewed content focusing on:

Structural economic challenges
Housing affordability crisis
Policy impacts
Market stability concerns

CTV News adopted a more measured approach (Sentiment: -0.3), examining:

Economic indicator analysis
Policy developments
Market trends
Consumer impact stories

Global News (Sentiment: -0.3) emphasized:

Economic pressures
Labour market developments
Consumer spending patterns
Market adaptations

The Reddit Discussion: How Financially Engaged Canadians Processed It All

Significant insights emerged from discussions across Reddit's financial communities, providing a window into financially engaged Canadian sentiment. While Reddit's demographic composition – predominantly younger, urban, and affluent – represents a specific subset of Canada's population, its reach is substantial. With 1.8 million monthly Canadian visitors, making Canada the third-largest user base globally behind the US and UK,⁶ these platforms offer valuable insight into retail sentiment and market interpretation.

Our analysis painted a picture of mounting concern, with an aggregate sentiment score of –0.53.

Community-specific sentiment metrics:

r/CanadianInvestor: -0.65 (Indicating significant bearish positioning)
r/PersonalFinanceCanada: -0.3 (Reflecting moderate pessimism)
r/Canada: -0.65 (Demonstrating consistent bearish sentiment)

Primary areas of market concern centred on:

Employment market deterioration
Housing market instability
Inflation's impact on investment returns

The Sentiment-Reality Gap

The interplay between economic reality, media narratives, and public sentiment highlights key challenges and opportunities in understanding market psychology. While the hard data revealed an economy in transition—with a stable GDP, moderate inflation, and a cooling labour market—sentiment among financially engaged Canadians often amplified the negatives. Social media discussions, driven by rising unemployment and housing uncertainty, leaned far more pessimistic than both economic indicators and media reporting suggested.

Recent research highlights how social media’s architecture amplifies negative sentiment beyond what fundamentals warrant. As Zaki notes in Hope for Cynics, humans are “ravenous for information about one another, but nature has made us crave bitter social calories.” This negativity bias finds a powerful accelerant in engagement-driven algorithms, which reward emotional and polarizing content.⁷ Our analysis of Canadian financial subreddits reveals this dynamic in action, with mechanisms such as selective attention to negative news, group polarization, and rapid-fire discussions amplifying bearish sentiment. This disconnect from economic fundamentals can influence real-world market behaviour, potentially leading to self-fulfilling prophecies.

Consider a striking parallel from our neighbours to the south: during a period when U.S. markets posted strong returns and inflation moderated, public sentiment remained remarkably bearish—so much so that it contributed to a dramatic shift in political leadership despite contrary economic indicators.

In Canada's case, while the numbers painted a picture of an economy in transition—with stable GDP, moderating inflation, and a gradual labour market cooling—financial sentiment took a notably darker view.

This disconnect reveals some interesting insights:

Mainstream Media as a Balancing Force: While Reddit discussions tended to amplify concerns, mainstream media often played a stabilizing role, framing economic challenges within a broader context of resilience and adaptation. Surprisingly, the CBC, which has often been accused of being pro-government, was actually the most critical news outlet.
The Social Media Echo Chamber Effect: While traditional media maintained measured coverage (average sentiment of –0.3), social media amplified negative narratives (–0.65 sentiment score). This amplification effect, where bearish views find greater resonance online, creates a fascinating dynamic: where viewpoints can become disconnected from fundamentals not because the data changed, but because the way we process that data has transformed.

Ultimately, this sentiment analysis underscores the importance of multi-dimensional perspectives. By balancing raw economic data with qualitative insights from media and financial discussions, we can gain a richer understanding of market psychology and its impact on the broader economy.

Conclusion: Three Perspectives on One Economy

What emerges from these three streams of information isn't so much conflicting narratives as it is a study in how economic data gets filtered and processed in our digital age. The economic indicators showed clear challenges but also pockets of stability. Traditional media maintained a measured tone, while social media—increasingly the primary information source for a new generation of financially engaged Canadians—amplified concerns about what these developments meant for portfolios and quality of life in Canada.

As the numbers traced an economy navigating both headwinds and tailwinds, different platforms processed this reality through their own distinct lenses. The gap between Reddit's bearish chorus (–0.65 sentiment) and traditional media's measured assessment (–0.3 sentiment) reveals more than just different perspectives – it shows how modern market psychology is increasingly shaped by digital echo chambers.

If 2024 taught us anything, it's the importance of a wide-angle lens—and understanding which filters are colouring our view.

Methodology: Economic data covers October 2023 through October 2024, sourced from Statistics Canada and the IMF. YouTube analysis examined most-viewed videos about the "Canadian Economy" from major news networks' official channels between January and December 5, 2024. Reddit analysis covered economic discussions across three major Canadian financial communities during the same period. Sentiment scores range from -1 (extremely negative) to +1 (extremely positive).

References

¹ Statistics Canada Labour Force Characteristics

² Statistics Canada Housing Market Indicators

³ IMF Data Mapper Real GDP Growth Canada

⁴ Statistics Canada Consumer Price Index

⁶ Exploding Topics: Reddit User Age, Gender, & Demographics (2024)

⁷Hope for Cynics: The Surprising Science of Human Goodness

A Deep Dive into ‘24

Canada's economy in 2024 presented a complex narrative best understood through multiple lenses. This analysis examines three perspectives that shaped the year's financial landscape: the economic data, the media narratives that interpreted these developments, and the response of a subset of Canadians. By weaving together these distinct information streams, we uncover a more nuanced understanding of how macro-level economic realities resonated across Canada this year.

Our Approach

To understand the mood of financially engaged Canadians this year, we:

Tracked key economic indicators from Statistics Canada and the IMF (Oct 2023–Oct 2024)
Examined the most-viewed economic videos on major news networks' YouTube channels, accumulating 5,859,448 views (Jan–Dec 5, 2024)
Analyzed over a thousand discussions across Canada's largest financial communities on Reddit (Jan–Dec 5, 2024)

For our sentiment analysis of Reddit discussions and YouTube content, we used a scale from –1 (extremely negative) to +1 (extremely positive), allowing us to quantify the tone and tenor of discussions.

The Numbers

Between October 2023 and October 2024, Canada's economic indicators revealed significant structural shifts in the economy.

The labour market showed clear signs of cooling, with unemployment climbing from 5.7% to 6.5%, hitting an uncomfortable peak of 6.6% in August.¹

The housing market showed significant contraction, with housing starts declining to 19,670 units, representing an 11.2% decrease year-over-year.²

Broader economic metrics indicated underlying stability despite sectoral challenges: GDP growth maintained at 1.3%,³ while inflation moderated to 2.0% year-over-year.⁴

Media Analysis and Market Interpretation

When we turned to YouTube - the second most visited site in Canada after Google⁵ - we found major Canadian news networks taking distinct approaches. Our analysis of the most-viewed "Canadian Economy" videos collectively reached nearly 6 million viewers.

CBC News (Sentiment: -0.5) maintained the most critical stance, with their most-viewed content focusing on:

Structural economic challenges
Housing affordability crisis
Policy impacts
Market stability concerns

CTV News adopted a more measured approach (Sentiment: -0.3), examining:

Economic indicator analysis
Policy developments
Market trends
Consumer impact stories

Global News (Sentiment: -0.3) emphasized:

Economic pressures
Labour market developments
Consumer spending patterns
Market adaptations

The Reddit Discussion: How Financially Engaged Canadians Processed It All

Significant insights emerged from discussions across Reddit's financial communities, providing a window into financially engaged Canadian sentiment. While Reddit's demographic composition – predominantly younger, urban, and affluent – represents a specific subset of Canada's population, its reach is substantial. With 1.8 million monthly Canadian visitors, making Canada the third-largest user base globally behind the US and UK,⁶ these platforms offer valuable insight into retail sentiment and market interpretation.

Our analysis painted a picture of mounting concern, with an aggregate sentiment score of –0.53.

Community-specific sentiment metrics:

r/CanadianInvestor: -0.65 (Indicating significant bearish positioning)
r/PersonalFinanceCanada: -0.3 (Reflecting moderate pessimism)
r/Canada: -0.65 (Demonstrating consistent bearish sentiment)

Primary areas of market concern centred on:

Employment market deterioration
Housing market instability
Inflation's impact on investment returns

The Sentiment-Reality Gap

The interplay between economic reality, media narratives, and public sentiment highlights key challenges and opportunities in understanding market psychology. While the hard data revealed an economy in transition—with a stable GDP, moderate inflation, and a cooling labour market—sentiment among financially engaged Canadians often amplified the negatives. Social media discussions, driven by rising unemployment and housing uncertainty, leaned far more pessimistic than both economic indicators and media reporting suggested.

Recent research highlights how social media’s architecture amplifies negative sentiment beyond what fundamentals warrant. As Zaki notes in Hope for Cynics, humans are “ravenous for information about one another, but nature has made us crave bitter social calories.” This negativity bias finds a powerful accelerant in engagement-driven algorithms, which reward emotional and polarizing content.⁷ Our analysis of Canadian financial subreddits reveals this dynamic in action, with mechanisms such as selective attention to negative news, group polarization, and rapid-fire discussions amplifying bearish sentiment. This disconnect from economic fundamentals can influence real-world market behaviour, potentially leading to self-fulfilling prophecies.

Consider a striking parallel from our neighbours to the south: during a period when U.S. markets posted strong returns and inflation moderated, public sentiment remained remarkably bearish—so much so that it contributed to a dramatic shift in political leadership despite contrary economic indicators.

In Canada's case, while the numbers painted a picture of an economy in transition—with stable GDP, moderating inflation, and a gradual labour market cooling—financial sentiment took a notably darker view.

This disconnect reveals some interesting insights:

Mainstream Media as a Balancing Force: While Reddit discussions tended to amplify concerns, mainstream media often played a stabilizing role, framing economic challenges within a broader context of resilience and adaptation. Surprisingly, the CBC, which has often been accused of being pro-government, was actually the most critical news outlet.
The Social Media Echo Chamber Effect: While traditional media maintained measured coverage (average sentiment of –0.3), social media amplified negative narratives (–0.65 sentiment score). This amplification effect, where bearish views find greater resonance online, creates a fascinating dynamic: where viewpoints can become disconnected from fundamentals not because the data changed, but because the way we process that data has transformed.

Ultimately, this sentiment analysis underscores the importance of multi-dimensional perspectives. By balancing raw economic data with qualitative insights from media and financial discussions, we can gain a richer understanding of market psychology and its impact on the broader economy.

Conclusion: Three Perspectives on One Economy

What emerges from these three streams of information isn't so much conflicting narratives as it is a study in how economic data gets filtered and processed in our digital age. The economic indicators showed clear challenges but also pockets of stability. Traditional media maintained a measured tone, while social media—increasingly the primary information source for a new generation of financially engaged Canadians—amplified concerns about what these developments meant for portfolios and quality of life in Canada.

As the numbers traced an economy navigating both headwinds and tailwinds, different platforms processed this reality through their own distinct lenses. The gap between Reddit's bearish chorus (–0.65 sentiment) and traditional media's measured assessment (–0.3 sentiment) reveals more than just different perspectives – it shows how modern market psychology is increasingly shaped by digital echo chambers.

If 2024 taught us anything, it's the importance of a wide-angle lens—and understanding which filters are colouring our view.

Methodology: Economic data covers October 2023 through October 2024, sourced from Statistics Canada and the IMF. YouTube analysis examined most-viewed videos about the "Canadian Economy" from major news networks' official channels between January and December 5, 2024. Reddit analysis covered economic discussions across three major Canadian financial communities during the same period. Sentiment scores range from -1 (extremely negative) to +1 (extremely positive).

References

¹ Statistics Canada Labour Force Characteristics

² Statistics Canada Housing Market Indicators

³ IMF Data Mapper Real GDP Growth Canada

⁴ Statistics Canada Consumer Price Index

⁶ Exploding Topics: Reddit User Age, Gender, & Demographics (2024)

⁷Hope for Cynics: The Surprising Science of Human Goodness

A Deep Dive into ‘24

Canada's economy in 2024 presented a complex narrative best understood through multiple lenses. This analysis examines three perspectives that shaped the year's financial landscape: the economic data, the media narratives that interpreted these developments, and the response of a subset of Canadians. By weaving together these distinct information streams, we uncover a more nuanced understanding of how macro-level economic realities resonated across Canada this year.

Our Approach

To understand the mood of financially engaged Canadians this year, we:

Tracked key economic indicators from Statistics Canada and the IMF (Oct 2023–Oct 2024)
Examined the most-viewed economic videos on major news networks' YouTube channels, accumulating 5,859,448 views (Jan–Dec 5, 2024)
Analyzed over a thousand discussions across Canada's largest financial communities on Reddit (Jan–Dec 5, 2024)

For our sentiment analysis of Reddit discussions and YouTube content, we used a scale from –1 (extremely negative) to +1 (extremely positive), allowing us to quantify the tone and tenor of discussions.

The Numbers

Between October 2023 and October 2024, Canada's economic indicators revealed significant structural shifts in the economy.

The labour market showed clear signs of cooling, with unemployment climbing from 5.7% to 6.5%, hitting an uncomfortable peak of 6.6% in August.¹

The housing market showed significant contraction, with housing starts declining to 19,670 units, representing an 11.2% decrease year-over-year.²

Broader economic metrics indicated underlying stability despite sectoral challenges: GDP growth maintained at 1.3%,³ while inflation moderated to 2.0% year-over-year.⁴

Media Analysis and Market Interpretation

When we turned to YouTube - the second most visited site in Canada after Google⁵ - we found major Canadian news networks taking distinct approaches. Our analysis of the most-viewed "Canadian Economy" videos collectively reached nearly 6 million viewers.

CBC News (Sentiment: -0.5) maintained the most critical stance, with their most-viewed content focusing on:

Structural economic challenges
Housing affordability crisis
Policy impacts
Market stability concerns

CTV News adopted a more measured approach (Sentiment: -0.3), examining:

Economic indicator analysis
Policy developments
Market trends
Consumer impact stories

Global News (Sentiment: -0.3) emphasized:

Economic pressures
Labour market developments
Consumer spending patterns
Market adaptations

The Reddit Discussion: How Financially Engaged Canadians Processed It All

Significant insights emerged from discussions across Reddit's financial communities, providing a window into financially engaged Canadian sentiment. While Reddit's demographic composition – predominantly younger, urban, and affluent – represents a specific subset of Canada's population, its reach is substantial. With 1.8 million monthly Canadian visitors, making Canada the third-largest user base globally behind the US and UK,⁶ these platforms offer valuable insight into retail sentiment and market interpretation.

Our analysis painted a picture of mounting concern, with an aggregate sentiment score of –0.53.

Community-specific sentiment metrics:

r/CanadianInvestor: -0.65 (Indicating significant bearish positioning)
r/PersonalFinanceCanada: -0.3 (Reflecting moderate pessimism)
r/Canada: -0.65 (Demonstrating consistent bearish sentiment)

Primary areas of market concern centred on:

Employment market deterioration
Housing market instability
Inflation's impact on investment returns

The Sentiment-Reality Gap

The interplay between economic reality, media narratives, and public sentiment highlights key challenges and opportunities in understanding market psychology. While the hard data revealed an economy in transition—with a stable GDP, moderate inflation, and a cooling labour market—sentiment among financially engaged Canadians often amplified the negatives. Social media discussions, driven by rising unemployment and housing uncertainty, leaned far more pessimistic than both economic indicators and media reporting suggested.

Recent research highlights how social media’s architecture amplifies negative sentiment beyond what fundamentals warrant. As Zaki notes in Hope for Cynics, humans are “ravenous for information about one another, but nature has made us crave bitter social calories.” This negativity bias finds a powerful accelerant in engagement-driven algorithms, which reward emotional and polarizing content.⁷ Our analysis of Canadian financial subreddits reveals this dynamic in action, with mechanisms such as selective attention to negative news, group polarization, and rapid-fire discussions amplifying bearish sentiment. This disconnect from economic fundamentals can influence real-world market behaviour, potentially leading to self-fulfilling prophecies.

Consider a striking parallel from our neighbours to the south: during a period when U.S. markets posted strong returns and inflation moderated, public sentiment remained remarkably bearish—so much so that it contributed to a dramatic shift in political leadership despite contrary economic indicators.

In Canada's case, while the numbers painted a picture of an economy in transition—with stable GDP, moderating inflation, and a gradual labour market cooling—financial sentiment took a notably darker view.

This disconnect reveals some interesting insights:

Mainstream Media as a Balancing Force: While Reddit discussions tended to amplify concerns, mainstream media often played a stabilizing role, framing economic challenges within a broader context of resilience and adaptation. Surprisingly, the CBC, which has often been accused of being pro-government, was actually the most critical news outlet.
The Social Media Echo Chamber Effect: While traditional media maintained measured coverage (average sentiment of –0.3), social media amplified negative narratives (–0.65 sentiment score). This amplification effect, where bearish views find greater resonance online, creates a fascinating dynamic: where viewpoints can become disconnected from fundamentals not because the data changed, but because the way we process that data has transformed.

Ultimately, this sentiment analysis underscores the importance of multi-dimensional perspectives. By balancing raw economic data with qualitative insights from media and financial discussions, we can gain a richer understanding of market psychology and its impact on the broader economy.

Conclusion: Three Perspectives on One Economy

What emerges from these three streams of information isn't so much conflicting narratives as it is a study in how economic data gets filtered and processed in our digital age. The economic indicators showed clear challenges but also pockets of stability. Traditional media maintained a measured tone, while social media—increasingly the primary information source for a new generation of financially engaged Canadians—amplified concerns about what these developments meant for portfolios and quality of life in Canada.

As the numbers traced an economy navigating both headwinds and tailwinds, different platforms processed this reality through their own distinct lenses. The gap between Reddit's bearish chorus (–0.65 sentiment) and traditional media's measured assessment (–0.3 sentiment) reveals more than just different perspectives – it shows how modern market psychology is increasingly shaped by digital echo chambers.

If 2024 taught us anything, it's the importance of a wide-angle lens—and understanding which filters are colouring our view.

Methodology: Economic data covers October 2023 through October 2024, sourced from Statistics Canada and the IMF. YouTube analysis examined most-viewed videos about the "Canadian Economy" from major news networks' official channels between January and December 5, 2024. Reddit analysis covered economic discussions across three major Canadian financial communities during the same period. Sentiment scores range from -1 (extremely negative) to +1 (extremely positive).

References

¹ Statistics Canada Labour Force Characteristics

² Statistics Canada Housing Market Indicators

³ IMF Data Mapper Real GDP Growth Canada

⁴ Statistics Canada Consumer Price Index

⁶ Exploding Topics: Reddit User Age, Gender, & Demographics (2024)

⁷Hope for Cynics: The Surprising Science of Human Goodness