Canada Household Debt Levels Climb Higher
Bank of Canada already cautious on how indebted households will respond to higher rates
The ratio of household credit market debt to personal disposable income in the third quarter climbed to 171.1%
Canada’s household debt levels have surged this century, fueled by an extended period of rock-bottom interest rates, and are among the highest on an adjusted basis among members of the Organization for Economic Cooperation and Development. Canada recovered faster than other major industrialized economies following the 2008-09 global recession, as its financial system didn’t require a bailout and commodity prices rose.
.. As a share of U.S. economic output, household debt in America was about 66% in the third quarter versus a high of around 87% in early 2009