Most everyone knows that Canadians hold a lot of household debt now. Debt levels have been growing for years, but it still seems surprising that Canada is second only to Greece in household debt growth. This according to a report from the McKinsey Global Institute who adds our country to a list of seven others at risk from high debt levels.
The report found household debt in Canada had risen to 155 per cent of income in 2014, up from 133 per cent seven years earlier. That’s a slightly lower estimate than the Bank of Canada’s, which estimates household debt at 162.6 per cent of income, a record high.
Only Greece saw a larger increase in household debt since the Great Recession, rising 30 percentage points. The U.S., by comparison, has seen household debt levels decline by 26 percentage points, relative to income, in that time. U.S. household debt levels have been largely falling since the country’s housing bubble burst during the last recession.
Read the full article here.
You’ll be relieved to know that even though our debt growth has been 2nd fastest, we still don’t have the highest debt levels. That prize goes to Denmark and Norway.