Canada's household debt highest among G7 countries: report

By: 600011 On: Feb 29, 2024, 5:04 PM


Canada has highest household debt among G7 countries, report says Canada has the highest household debt among the G7 countries, according to a report by the Canada Mortgage and Housing Corporation in May last year. CMHC Deputy Chief Economist Aled Ab Iorwerth found this to be steep compared to other countries.

Canada ranks second among G7 countries with the wealthiest households, according to a Statistics Canada report released Wednesday. America is number one. But the country's reliance on consumer spending as the main source of economic growth has led to more debt.

Experts call housing a 'double-edged sword' in this context. Experts observe that this is critical to wealth creation for middle-class households but leads to debt-asset imbalances. In short, the rich get richer while others are forced to spend more than they earn to cope with rising cost-of-living pressures.