Canadian Households Now The Third Most Indebted In The World
Canadian households are more indebted than they think. A new report from Quebec-based Desjardins’ shows households recently accumulated a world class amount of debt. In fact, households borrowed so much that they’re now the third most indebted across the world. Even more surprising is the fact this debt is mostly held by just a small share of households.
Canadians Are The Most Indebted Households In The World
Canadian households have been on an epic borrowing spree. At the start of 2020, they interpreted record low rates as a signal to borrow as much as possible, as fast as they could. From Q1 2020 to Q1 2024, household debt climbed a whopping 25% higher. Two-thirds of the accumulation occurred before the first rate increase in Q1 2022.
The debt surge helped put households amongst the most indebted in the world. They now owe over 100% of GDP, making Canadian households the third most indebted in the world, and the most indebted of any G7 economy. It’s only beat by Australia and Switzerland, with both respective economies just a fraction the size of Canada. …[Continue Reading]