Household Debt Declines In Canada
Levels of household debt across Canada declined in this year’s first quarter as disposable income rose across the country.
Statistics Canada reports that households owed $1.76 of debt for every dollar of disposable income in this year’s first quarter.
That was down from $1.78 of debt recorded in the fourth and final quarter of 2023.
At the same time, the amount of disposable income that Canadians allocated to servicing their debt (principal and interest combined) was 14.91% in Q1 of this year, down slightly from 14.98% in Q4 2023.
Between January and March of this year, disposable incomes across Canada rose 1.9% while debt payments increased 1.4%, said Statistics Canada.
Read:
US Bans Russian Uranium Imports: What It Means for the Future of Nuclear Power
Investment in AI Reaches New Heights: Key Insights for Retail Investors
Beyond Big Tech: Key Players Fueling the $1.8 Trillion AI Infrastructure Boom
The Fight Against Pancreatic Cancer: Biotech Firms Develop New Solutions for Rising Gen X Cases
The Race for Copper: Why Recycling and New Discoveries Are Crucial for Future Tech
Over the past two years, Canadians have seen their debt obligations rise alongside higher interest rates.
However, the Bank of Canada has now begun lowering interest rates, announcing the first rate reduction in four years earlier in June.
The lower interest rates come as inflation across Canada moderates and the economy slows.