Ottawa. Canada’s economy is going through difficult times. Household debt in the country, i.e. debt on families, has now reached 103 percent of the GDP. This means that Canadian citizens have a debt that exceeds the country’s total GDP, which includes both interest and principal.
These figures show that Canadians are in more debt than their disposable income, posing a serious threat to the country’s economic stability. This imbalance causes Canadians to borrow excessively to purchase properties and other essential expenses.
Analysts believe that this debt is a dangerous sign for the economic health of the country. In countries where household debt is high, families have to face financial uncertainty. After Canada, comes Britain, where people have 80 percent debt of the country’s GDP. This proportion is comparatively lower in other countries, such as 73 percent in the US, 63 percent in France, 62 percent in China and 52 percent in Germany. At the same time, in India this figure is 37 percent, which is much lower than Canada, which shows that the debt burden on Indian families is less.
Canada’s troubles are not ending here. Canada’s economic situation is likely to come under further pressure after Donald Trump’s victory in the recent presidential elections in America. Trump had promised in his election campaign to impose higher tariffs on imports and review the North American Free Trade Agreement. If Trump takes this step, Canada’s trade relations with its largest trading partner, America, could be affected, which could cause a major blow to the country’s economy.
Experts say that if this is not taken care of, the country may have to face economic instability. Canadians are facing inflation and financial uncertainties due to increasing debt. In such a situation, it has to be seen what steps the Canadian government takes to deal with this crisis, so that the country can maintain economic balance and people can get free from the debt trap.