Is Canada household debt the highest in the G7?
Household debt in Canada is now the highest of any G7 country, according to data by the country's housing agency. The amount owed by Canadian households is also higher than the country's entire GDP.
Canada has the highest level of household debt to disposable income of any G7 country, Statistics Canada reported Wednesday. The agency wrote that its 2021 census survey revealed debt-to-income ratio reached more than 180 per cent, beating the United States and Germany by a large margin.
- Denmark. Denmark had the highest household-debt-to-income ratio of all the nations we looked at, with a reported debt of 252.18%. ...
- Norway. Norway was only slightly behind Denmark on our list, with a debt-to-income ratio of 246.79%. ...
- Switzerland.
Canada's general government net debt, which includes provincial and municipal borrowing but is reduced by pension assets, is the lowest by far among the G7 countries. But its gross debt, at an estimated 106.4% of GDP in 2023, is higher than that of Germany and the UK, IMF data shows.
In 2022, Canada had the third lowest level of gross public debt as a percent of GDP among the G7 countries – lower than Japan, Italy, the United States, and France, but higher than Germany, and the United Kingdom. Source: International Monetary Fund, World Economic Outlook Database, April 2023.
Yet Prime Minister Trudeau insists his government has “a responsible fiscal track,” again claiming that Canada has the lowest net debt-to-GDP ratio among G7 countries (Germany, Italy, Japan, France, the United Kingdom and the United States).
The Trudeau government has more than $1.21 trillion of debt, and then paying the interest on that debt will cost something like $46.5 billion.
The IMF puts Canada's general government net debt-to-GDP ratio at a relatively skinny 14% as of 2023. The G7 average? Well, it's currently 95% and set to turn one hundred in short order. For those familiar with the IMF's estimates on net debt, you'll perhaps notice a non-trivial revision to Canada's net debt load.
Canada Government debt accounted for 67.8 % of the country's Nominal GDP in Mar 2023, compared with the ratio of 73.0 % in the previous year. Canada government debt to GDP ratio data is updated yearly, available from Mar 1962 to Mar 2023.
By far, Canadian institutional investors hold most of Canada's debt. That includes insurance companies, banks, private pension funds, and government pension funds (including the Canada Pension Plan). Even the Bank of Canada holds Canadian debt. Together, they hold 76% of Canada's debt.
Why is Canada so indebted?
Household debt in Canada is now the highest of any G7 country, according to data by the country's housing agency. The amount owed by Canadian households is also higher than the country's entire GDP. The Canada Mortgage and Housing Corporation said high home prices are to blame for the ballooning debt.
Canada's 2017 debt-to-GDP ratio was 89.7%, compared to the United States at 107.8%. According to the IMF's 2018 annual Article IV Mission to Canada, compared to all the G7 countries, including the United States, Canada's "total government net debt-to-GDP ratio", is the lowest.
Canada has the lowest inflation in the G7: 🇨🇦 2.8% 🇺🇸 3% 🇯🇵 3.2% 🇫🇷 4.5% 🇮🇹 6.4% 🇩🇪 6.4% 🇬🇧 8.7 % Let's keep making life more affordable and building an economy that works for all Canadians.
Economic growth has stuttered for much of the last year as a result of the Bank of Canada's rate hikes in 2022. Wage growth is helping some households to keep up with inflation, while population growth is also helping keep the economy from falling into a recession.
Report from CMHC blames ballooning debt-to-GDP ratio on unaffordable housing and the rise in interest rates that is hammering already stretched homeowners. Updated July 19, 2023 at 6:50 a.m.
(GDP), Canada ranks 11th lowest of 29 countries and lowest amongst the G7. By using gross debt as a share of the economy, Canada falls to 25th of 29 countries and 4th in the G7. change in its indebtedness ranking—falling 14 places—when the measure shifts from net debt to gross debt.
For 2021, Canada has been chosen #1 for the 6th year in a row as the #1 country for its quality of life and social purpose. For 2021, Canada has been chose #2 for Racial Equality after The Netherlands who was the #1. For 2021, Canada has been chosen as the #1 Overall Best Country.
Government debt in EU countries in relation to gross domestic product (GDP) Q3 2023. In the fourth quarter of 2020, Greece's national debt was the highest in all of the European Union, amounting to 165.5 percent of Greece's gross domestic product.
Financially strong. Canada's ranks #1 in the G7 for banking stability and access and #3 in financial market sophistication.
For instance, while Canada compares favourably when looking at government net debt-to-GDP, which includes the value of financial assets such as the Canada Pension Plan, Canada's gross debt levels are much higher than other AAA-rated countries – at 107 per cent versus 45 per cent for Germany or 5 per cent for Denmark.
What province in Canada is most indebted?
Newfoundland and Labrador has the highest debt-to-GDP ratio among the provinces at 41.6 per cent in 2023/24, while Alberta recorded the most substantial increase in its debt-to-GDP ratio between 2007/08 (-13.4 per cent) and 2023/24 (9.0 per cent)—a hike of 22.4 percentage points.
That means Canadians owe nearly $1.85 for every dollar of disposable income. And an RBC poll found that the Canadians between the ages of 35 and 44 carrying debt had a total debt-to-disposable income ratio of 250% in 2019.
In a demographic report released on Tuesday, StatCan said this rate of growth places Canada ahead of all other G7 countries and among the top 20 fastest growing countries in the world during that period.
Budget deficits and increasing debt have become serious fiscal challenges facing the federal and many provincial governments recently. Since 2007/08, combined federal and provincial net debt (inflation-adjusted) has nearly doubled from $1.18 trillion to a projected $2.18 trillion in 2023/24.
