Economics
Canada's Credit Cycle Has Never Been This Desynchronized From the United States
A rapid private debt binge is nearly over, Macquarie says.
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Canada has entered the very late innings of its super-charged private sector credit cycle, one that has completely decoupled from that of its largest trading partner, according to Macquarie Analyst David Doyle.
"Canada’s private sector nonfinancial debt to GDP ratio (includes household debt and non-financial business debt) has skyrocketed since 2005, rising by over 60 percentage points," he wrote. "This is a greater magnitude of increase than occurred for the forty years prior (1965 to 2005)."