Canadian household debt bigger than its GDP, for first time

Sep 15 2016, 5:28 pm

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 .

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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