The Debt Dilemma: The debt levels in the U.S. and Canada are growing faster than GDP, with U.S. federal and Canadian household debt hitting critical zones.🚨
The Debt Dilemma: Debt Outpacing GDP Growth (2014 vs. 2024)
| USA | Canada | ||||||
|---|---|---|---|---|---|---|---|
| 2014 | 2024 | 10-year Increase | 2014 | 2024 | 10-year Increase | ||
| Total Debt | $41.7 Trillion (238% of GDP) | $75.1 Trillion (259% of GDP) | +80% | C$3.6 Trillion (179% of GDP) | C$6.5 Trillion (216% of GDP) | +82% | |
| GDP | $17.5 Trillion | $29 Trillion | +66% | C$2.0 Trillion | C$3.0 Trillion | +51% | |
| Federal Government Debt | Public Debt | $12.9 Trillion (74% of GDP) | $28.6 Trillion (99% of GDP) | +122% | C$0.64 Trillion (32% of GDP) | C$1.39 Trillion (46% of GDP) | +117% |
| Public Debt + Intragovernment | $17.9 Trillion (102% of GDP) | $35.9 Trillion (124% of GDP) | +101% | ||||
| Household Debt | $11.6 Trillion (74% Real Estate + 26% Consumer) | $17.8 Trillion (72% Real Estate + 28% Consumer) | +53% | C$1.83 Trillion (77% Real Estate + 23% Consumer) | C$2.94 Trillion (81% Real Estate + 19% Consumer) | +60% | |
| Business Debt | $12.2 Trillion (31% Mortgage + 69% Non-Mortgage) | $21.4 Trillion (31% Mortgage + 69% Non-Mortgage) | +75% | C$1.09 Trillion (19% Mortgage + 81% Non-Mortgage) | C$2.17 Trillion (18% Mortgage + 82% Non-Mortgage) | +99% | |
Key Insights:
- 1️⃣ Debt Levels:
- U.S.: Total debt (excluding local government and non-profit sectors) is US$75.1 trillion (📊 259% of GDP).
- Canada: Total debt stands at C$6.5 trillion (📊 216% of GDP).
- 2️⃣ Federal Debt Surge:
- U.S.: The federal debt is a staggering 124% of GDP, raising significant concerns.🚩
- Canada: The federal debt has grown at the fastest rate among all debt categories, signaling a worrying trend.
- 3️⃣ Debt vs. GDP Growth:Over the last decade, all debt categories, except U.S. household debt, have grown faster than GDP.📈
- 4️⃣ Household Debt Composition:🏡Mortgage Debt: In Canada, it makes up a larger share of household debt compared to the U.S., reflecting higher home prices in Canada vs. U.S.
- 5️⃣ Debt-Driven Growth:
- Economic growth in both countries increasingly depends on rising debt.
- The troubling reality is that debt is growing faster than GDP, raising serious concerns about long-term sustainability.
While debt-fueled growth provides short-term economic boosts, these trends call for urgent fiscal and monetary discipline to ensure economic stability in the years to come.
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