Canada has the highest household debt to GDP ratio among the world's top 10 economies, mainly due to the size of mortgages.
Real Estate Loans:
Mortgages and Home Equity Lines of Credit (HELOCs) constitute 79.6% of household debt in Canada. This means increasing home prices are the main cause of the staggering debt levels in Canada.
Last Decade (2014-2024):
While household debt increased from $1.85 trillion to $2.98 trillion (a 61% increase) in the last decade, the Canadian GDP grew at a slower pace of 51% during the same period.
World Ranking:
Canada's debt to GDP ratio is among the highest in the world, following Australia and Switzerland. In these countries, a combination of high home prices and tax incentives has resulted in elevated mortgage debt. One common aspect among countries with high household debt to GDP ratios is their strong banking sector.
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