Canadian household debt bigger than its GDP, for first time
Canada’s household debt has grown bigger than its GDP, for the first time.
According to a release from Statistics Canada on Tuesday, the ratio of household credit market debt compared to disposable income rose from 165.2% in the first quarter to 167.6% in the second quarter.
This means that for every dollar of disposable income, households held $1.68 in credit market debt .
Debt-to-income of CDN households is now nearly 170%, but this is misleading as it ignores assets. #cdnpoli #cdnecon pic.twitter.com/JaEqoC1wQw
— Trevor Tombe (@trevortombe) September 15, 2016
When assets are included, the picture changes drastically. Net worth to income ratio how 836% (!) #cdnecon #cdnpoli pic.twitter.com/mONeF8vXZP
— Trevor Tombe (@trevortombe) September 15, 2016
Additionally, total household credit market debt (consumer credit and mortgage and non-mortgage loans) reached $1,973 billion at the end of the second quarter.
Household borrowing also rose from $25.7 billion in the first quarter to $29.2 billion this quarter.
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