Rising household debt could be drag on long-term growth: federal document
OTTAWA — Even debt-free Canadians could eventually feel a pinch from someone else’s maxed-out credit cards, suggests research presented to senior officials at the federal housing agency.
Canada Mortgage and Housing Corp. board members received an update in March on the country’s credit and housing trends.
The presentation contained a warning: the steady climb of the household debt-to-GDP level had put Canada’s long-term economic growth prospects at risk.
The document pointed to a study that argued household debt accumulation eventually hampers economic growth over the longer term, eclipsing the nearer-term benefits of consumption.