RE:RE:RE:RE:RE:RE:StockTalk Podcast Canada was in better shape during the GFC but they are definitely not in better shape today. I can write a 10 page report on this topic but I'll keep it brief.
Canada has:
- higher household debt to gdp ~ 101.4% compared to US
which has 76.83% as of Q3. Canada's household debt to gdp is higher than US was during the peak of the last financial crisis.
- household debt to disposable income is 177.9% as of Q3. For every $1 of disposable income Canadians have they owe $1.77. In the US, for every $1 of disposable income, they owe about $1.05 in household debt
- Canada is in a much worse housing bubble. Here in Toronto, for every $1 in median household income your home costs can be 15 times! It is simply not sustainable and the average home buyer is priced out of the market.
- gdp per capita in the fourth quarter was negative even with all the immigration. My guess is that first quarter will be a continuation of this and a second consecutive quarter of negative gdp print. We call that a recession.