Canada has the highest level of household debt in the G7, making its economy vulnerable to a global economic crisis, according to the country’s housing agency.
In an analysis published Tuesday, Canada Mortgage and Housing Corp. deputy chief economist Aled ab Iorwerth said that the country’s household debt has been rising “inexorably” due to rising home prices.
Mortgages currently make up about three-quarters of household debtin Canada. While household debt made up 80 percent of the size of the overall Canadian economy during the 2008 recession, it rose to 95 percent in 2010 and exceeded its size in 2021, he noted.
“By contrast, household debt in the U.S. fell from 100 percent of GDP in 2008 to about 75 percent in 2021,” wrote ab Iorwerth….