Canada Household Debt Ratio Surpasses Levels in Other G7 Countries

Canada has the highest household debt to disposable income level of any G7 country, according to newly released Statistics Canada data. Canadian households’ debt-to-income ratio has reached 185 percent—roughly 35 percent above the United Kingdom and nearly 85 percent higher than the United States, StatCan said in its Feb. 28 report. That means Canadians owe $1.85 for every dollar they make after taxes. That’s up 17 points from the 168 percent ratio in 2018 and is a 119-point leap from 1980’s rate of 66 percent. “Canada’s reliance on consumer spending as a key source of economic growth has contributed to greater debt burdens, with the highest household debt in the G7,” StatCan said in its report....