Canada Household Debt-to-Income Ratio Holds Near Record HighBy
Canada’s closely-watched ratio of consumer debt to income held near a record high in the fourth quarter as incomes and borrowing rose at about the same pace.
The amount of credit-market debt in the household sector as a percentage of disposable income was 170.4 percent, down slightly from 170.5 percent in the third quarter.
The amount of debt Canadians are holding -- which now rests at about the size of Canada’s total output -- remains a primary concern for policy makers. The nation has relied on consumption for growth, and rising interest rates could dampen that strength.
National net worth per capita also continued its climb in the fourth quarter, reaching C$302,300 from C$296,200 in the previous quarter.