Posthaste: Interest payments are now sucking up almost 20% of income for some Canadians

Canada undoubtedly has a high level of household debt, but its exact rank in the world depends on the measurement index used.

According to the 2023 report by the Organization for Economic Cooperation and Development (OECD), Canada ranks third among the 38 developed countries in terms of the highest debt in terms of debt to GDP.

In other words, on average, Canadian households have $ 101 for $ 100 per $ 100.

South Korea and the United Kingdom are in second and third with 93 % and 88 % respectively.

In contrast, countries such as Germany and France are lower than 60 % with a ratio of debt to gross domestic income.

But if we look at the per capita debt of the household instead of debt to GDP, Canada's ranking is slightly different.

According to the Italian Central Bank in 2024, Canada is ranked ninth in the world with an average per capita debt of $ 52,000.

In this ranking, the United States is ranked first and second with $ 57,000 and Australia with $ 56,000, respectively.

Switzerland is ranked first in the list with an average per capita debt of $ 213,000.

Therefore, Canada's rank in terms of household debt depends on the index used.

However, there is no doubt that Canada is one of the world's high -level household debt countries, and this could pose challenges for its economy and financial stability.

important points:

The ratio of debt to the gross domestic household income represents the amount of debt as a percentage of income.
The per capita debt shows the average debt per person in one country.
The high level of household debt can lead to rising interest rates, lowering consumer demand, and ultimately a recession.


News source