International Monetary Fund report warns of Canada’s high debt levels
The International Monetary Fund warns in a new report about Canada’s high debt levels and higher-than-average pressure on Canadian households’ ability to pay down that debt.
The IMF says in its Global Financial Stability report released Wednesday that these dynamics in Canada’s private non-financial sector leaves its economy more sensitive to tighter financial conditions and weaker economic activity.
Canada was named along with Australia, Brazil, China and Korea as countries where the debt-service ratio has risen to high levels.
The IMF also says there was a particularly strong need in these economies for financial sector policy to guard against letting these imbalances grow any further.