- Analytics
- News and Tools
- Market News
- Canada's household debt is a headwind for consumption – TD Securities
Canada's household debt is a headwind for consumption – TD Securities
Robert Both, the macro strategist at TD Securities, notes that Canada's household balance sheets for 2019Q2 showed slight progress in the deleveraging process.
- “Canadian households still owe $1.77 for every dollar of income and spend 14.9% of disposable income on debt payments, which represents a significant headwind to future consumption growth.
- The deleveraging process will take time and leave debt-service ratios elevated over the projection horizon. We estimate that every 1% rise in the debt-service-ratio coincides with a 0.1-0.2pp drag on consumption over the following year.
- Complicating matters is an already low savings rate. Further declines can provide a slight boost to consumption, but should households prioritize saving to guard against future rate hikes it would result in a more sluggish pace of spending.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
