- Aug 6, 2012
- 28,082
- 24,872
- 2,405
Police states are expensive and not very innovative. Will America follow in our footsteps? Canadian households now have the worst debt ratio of any G7 country.
Canadians have racked up more household debt than any country in the G7 making the country vulnerable to global economic crises, according to a report released Tuesday by the Canada Mortgage and Housing Corporation.
Aled ab Iorwerth, CMHC’s deputy chief economist, writes in the report that since 2008 Canada’s household debt-to-GDP ratio has been ballooning despite it dropping in the U.S. some 25 per cent over the same period.
“Household debt in Canada has been rising inexorably,” reads the report. “At the time of the recession in 2008, it stood at about 80 per cent of the size of the economy, in 2010 it rose to 95 per cent, and by 2021 debt exceeded its size.
At the end of 2021 Canada’s household debt-to-GDP ratio was at 107 per cent, according to the report.
Over the same period of time, household debt dropped in the U.S., U.K. and Germany and was nearly unchanged in Italy.
About three-quarters of Canadian household debt is from mortgages and high interest rates are straining household finances, ab Iorwerth said.
“We see early warning signs that more and more consumers are getting into financial difficulties.”
Canadians have racked up more household debt than any country in the G7 making the country vulnerable to global economic crises, according to a report released Tuesday by the Canada Mortgage and Housing Corporation.
Aled ab Iorwerth, CMHC’s deputy chief economist, writes in the report that since 2008 Canada’s household debt-to-GDP ratio has been ballooning despite it dropping in the U.S. some 25 per cent over the same period.
“Household debt in Canada has been rising inexorably,” reads the report. “At the time of the recession in 2008, it stood at about 80 per cent of the size of the economy, in 2010 it rose to 95 per cent, and by 2021 debt exceeded its size.
At the end of 2021 Canada’s household debt-to-GDP ratio was at 107 per cent, according to the report.
Over the same period of time, household debt dropped in the U.S., U.K. and Germany and was nearly unchanged in Italy.
About three-quarters of Canadian household debt is from mortgages and high interest rates are straining household finances, ab Iorwerth said.
“We see early warning signs that more and more consumers are getting into financial difficulties.”
Last edited:
