For every dollar of income, Canadians owe $1.69.
Canada’s household debt ratio – already the highest on earth – rose in Q2 to 169.1%.
That’s an increase of 0.8% from the ratio in Q1, which was 168.3%.
There has been a slight decline in the household debt ratio compared to Q2 of 2017, when it was at 169.7%, however the ratio is still at an extremely high level.
The total amount of household debt is $2.16 trillion, larger than our GDP.
Household debt is considered a key indicator of economic vulnerability, as it makes consumers far more vulnerable to interest rate hikes and/or economic downturns.
And with government policies like restrictive regulations, and the carbon tax making life even more expensive, more and more Canadians have turned to debt in order to maintain their standard of living.
Of course, elevated debt levels can’t be sustained forever, and Canada faces an economic reckoning unless we get a government that puts more money back in the pockets of Canadians.