Distorted Small Image with Wording

[Elsa G.]

I created on Affinity Photo an 4" x 4" image that contains wording as well and it looks great.   Once I decide to create a new document sized at 1 1/2" x 1 1/2" and I place this same image on a smaller canvas size, the image and wording gets pixelated and I cannot use it for the intended purpose.  I have been having this problem for several months now.  I used to have Adobe Creative Suite 6 and never had a problem resizing an image to 1 1/2" x 1 1/2" or to 1" x 1" overall.  

What is the proper solution for to this problem?

  

[GarryP]

Welcome to the forums @Elsa G.
Photo will always show your document at the DPI set in the Document Setup (as best it can given your screen resolution).
This means that if you have a 4×4 inch image and you place it (scaled) in a document which is 1.5×1.5 inches – at the same resolution as the original – it will look pixelated.
See my attached video where the first document is the original 4×4 inch at 72DPI and the second is 1.5×1.5 inches at 72DPI and contains a PNG export of the original.
This is normal.
Is this what you mean, or have I misunderstood?